04-Aug-22
Adani Enterprises Ltd
Balkrishna Industries Ltd
Balrampur Chini Mills Ltd
BEML Ltd
Berger Paints India Ltd
Dabur India Ltd
GAIL (India) Ltd
Hindustan Petroleum Corporation Ltd
LIC Housing Finance Ltd
Manappuram Finance Ltd
The Nifty continued to climb along with the day's expanding upper Bollinger Band. After hovering near the 61.8% retracement of the entire Oct 2021-June 2022 decline (i.e. near 17300) for the past few sessions, the index is stretching to the upside. It is slightly off its eventual target of 17500, which is a 78.6% retracement of the April-June decline. The market ended the highly volatile session on August 3rd with Nifty up 17400. At the close, the Sensex was up 214 points to 58350 and the Nifty was up 42 points to 17388. Bulls and bears lashed out in a volatile, charged session, but eventually the former kept up their winning streak on Dalal Street by buying IT and select financials. Although FII buying into local stocks has resumed after a 3 month hiatus, traders are taking a stock specific approach ahead of RBI's rate decision on Friday. Amid the geopolitical storm affecting global markets, domestic markets moved in line with their global peers. The global market is also concerned about the risk of a recession. On the domestic front, the main trigger this week will be the outcome of the RBI policy meeting, where the market is largely expecting a 25-50 basis point rate hike.
Technically, the Nifty has formed a double bottom formation on intraday charts and a bullish candle on daily charts, which is broadly positive. We believe that 17250 and 17350 would be the key support zones for traders. As long as the index trades above it, the uptrend structure is likely to continue. Above that it could move up to 17450-17550. On the other hand, 17250 would be the sacrosanct support level for trend following and position traders. The Nifty continued to climb along with the day's expanding upper Bollinger Band. After hovering near the 61.8% retracement of the entire Oct 2021-June 2022 decline (i.e. near 17300) for the past few sessions, the index is stretching to the upside. It is slightly off its eventual target of 17600, which is a 78.6% retracement of the April-June decline. Once tested, the Nifty is likely to enter a short-term mode of consolidation. Short-term support zone shifts up to 17250-17150. Therefore, the short-term traders can hold the long position with the reversal going back to 17150. However, they need to be very careful with their exposure to the broader end of the market and reduce exposure over there.
Resistance: 17450, 17550, 17650
Support: 17350, 17250, 17150
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