22 july 2022
Atul Ltd
Bandhan Bank Ltd
Crompton Greaves Consumer Electricals Ltd
Finolex Industries Ltd
HDFC Asset Management Company Ltd
HFCL Ltd
JSW Steel Ltd
Mahindra CIE Automotive Ltd
UltraTech Cement Ltd
Investors traded on cautious optimism as gains in oil & gas, energy, real estate and banking stocks helped markets extend gain for the 5th straight session. The return of FIIs to domestic equity markets in recent sessions, along with falling commodity prices and hopes that the US Federal Reserve will not make aggressive rate hikes at its next meeting, have eased investors' fears somewhat. It would be crucial to see how prices behave over the next few sessions. Traders should now avoid aggressive positions here and try to book profits on the long positions. Trading with a stock-specific approach and proper risk management should ideally be the trading strategy in such scenarios. Markets rose for a fifth straight session amid positive catalysts including optimism in global markets on easing fears of a very hawkish Fed rate hike, monsoon progressing much faster than previously expected and WTI oil prices on the back of Russia's Nord Stream 1 - Pipelines fall gas supplies resumed. With the support of FII buying, the domestic market withstood downward pressure from global markets and ended on a positive note. Global indices traded lower on rate hike concerns as the ECB is expected to hike rates by 50 basis points at its meeting today, while the Fed is expected to hike rates by 75 basis points in next week's meeting. Even if a rate hike of this magnitude has already been factored in, the key market driver would be their comment on future inflation and growth forecasts. Benchmark indices closed higher for the fifth straight day with Nifty above 16600. To finish, the Sensex was up 284 points, to 55681 and the Nifty was up 84 points to 16605. The markets managed to gain half a percent amidst the volatility on a weekly expiry day. Technically, Nifty has support at 16475 and below that the index might find support at the psychological 16400 level. The bullish bias remains intact as long as the psychological 16300 acts as support. Immediate support for Nifty has now shifted up to 16500 and if this breaks the index could see a price correction. On the other hand, resistance for the index is seen around 16600 which is the key retracement level and above that the next level to watch will be the early June high of 16800 . Technically, on the daily charts, the Nifty formed a bullish candle and closed above the 100-day SMA (simple moving average), which is largely positive. For traders, 16550 would act as a key support level, above which the index could rally to 16600-16800. On the downside, if the index trades below 16500, the strong possibility of a quick short-term correction is not ruled out. Below that, the index could slip to 16400-16300. The Bank Nifty index continued its upward move and remains in a buy-on-dip mode with strong support at the 35600 level. Immediate upside resistance stands at 36500 and a break of this lead will accelerate the move towards the 37500 level. Momentum oscillators are in the buy zone, confirming the strength.
Resistance: 16650, 16750, 16850
Support: 16550, 16450, 16350
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