STOCK MARKET ; NIFTY BANKNIFTY VIEW & CALLPUT TIPS FOR 14 JULY 2022

On 13 July 2022 Wednesday’s trading session after experiencing volatility in the first half; markets moved down in the final hour of trading as weak global indices dampened sentiment. Despite the sell-off in recent sessions, investors were trading cautiously and not taking long bets amid recession worries in the west that could hurt demand. China's decision to impose restrictions to combat the spread of the virus is also making investors nervous. On daily charts, Nifty formed a bearish candle and closed below the 50-day SMA level after a long time. Another pullback rally is possible only after Nifty surpasses 16075 and above, the index could rally to the 16125 -16175 levels. On the downside, if the index trades below the 50-day SMA or 15900, a corrective wave is likely to continue. Below that, the Nifty could slip to 15850-15800. Contra traders can place a long bet near 15800 with a strict support stop loss at 15900. The Nifty has faced resistance from multiple technical parameters in recent sessions. Consequently, it saw a consolidation in the 16025-16250 range. On 13th July, the index broke the 16025-16000 key support on a closing basis. Thus, the short-term structure has turned in favor of the bears. 

On the downside, the index is likely to test the bottom of a rising channel near 15850 on the hourly chart. The overall structure shows that the Nifty can move lower towards 15700 in the short term. On the other hand, any recovery towards 16025-16075 is expected to trigger a new round of selling. The Banknifty future broke the immediate support at 34900 and saw continued selling pressures throughout the day. It remains in sell mode and is likely to test the next support at 34500 on the downside. Upside resistance stands at 35400-35500 and once that level is reached traders should place aggressive bets on the long side. The rupee traded with minor losses, falling below 79.65 as the dollar index traded positive above 108; The rupee range is between 79.30 and 79.70. A Crude Oil price falling below USD 100 can be a positive trigger for the rupee, but this evening's inflation numbers from the US will be a key trigger for the rupee's movement against the dollar.

Resistance: 15850, 15950, 16050

Support: 15750, 15650, 15550