NIFTY PREDICTION FOR NEXT WEEK 31 JULY TO 4 AUGUST 2023

WEEKLY RESISTANCE FOR NIFTY: 19200, 19400, 19600

PIVOT POINT: 19000

WEEKLY SUPPORT FOR NIFTY:  18800, 18600, 18400

WEEKLY CHART FOR NIFTY

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The week began with the Indian equity markets opening flat on 24 july 2023 due to a lack of significant triggers in the morning. As the day progressed, Nifty experienced choppy moves within a 100-point range. Eventually, during the second half the inclination was on the lower side, as Nifty ended with a loss of 0.37%, just above 19650. Benchmark stock indexes ended Tuesday's 25 july 2023 trading session marginally lower after consumer stocks slumped. The Sensex closed 29 points lower at 66355 while the NSE Nifty 50 closed 8 points higher at 19680. The two key equity benchmarks, Sensex and Nifty, on Wednesday 26 july 2023 snapped their losing run and showed a firm trading session on the back of strong Q1 earnings by Larsen & Toubro and Tata Motors. The domestic indices, which were volatile in the early part of the trading, turned stable ahead of the US Fed's outcome later tonight. Apart from that, IT and banks stocks witnessed some buying.The S&P BSE Sensex touched that a high at 66,897 and was up nearly 550 points at the high point of the day, pared gains and settled 351 points higher at 66707. On the other hand, the NSE Nifty50 hit a high of 19826 before closing with a gain of 98 points at 19778. Markets saw wild turmoil on expiry day as the announcement of another rate hike by the US Federal Reserve dampened sentiment and prompted investors to book gains in auto, banking and oil & gas stocks. However, after the recent correction, real estate and pharmaceutical stocks have been in the spotlight. Many investors are not comfortable with current valuations and are therefore returning their investment at every opportunity. Benchmark indices ended on a negative note on July 27 with Nifty at 19700. At close, the Sensex was down 440 points at 66266, and the Nifty was down 118 points at 19659. Indian equity benchmarks Nifty 50 and Sensex ended lower on Friday (July 28) amid selling in financial services, and IT stocks. The Nifty 50 ended at 19646, down 13 points while the Sensex settled at 66160, down 106 points. 

NIFTY: STRONG SUPPORT& STRONG RESISTANCE LEVEL

Technically, on intraday charts, the Nifty has formed a lower top formation, which is largely negative. For positional traders, the 20-day SMA or 19600 would act as a sacrosanct support zone. If the index succeeds to trade above the same, then it could bounce back till 19825. On further upside it could lift the market till 19900. On the flip side, a fresh sell off is possible only after the dismissal of 19575 and below the same it could slip till 19500-19400.

 TECHNICALLY SPEAKING

The Nifty opened on a flat note and saw volatile price action. The price declined in the first half and rallied sharply towards the end, helping the price clear intraday lows of around 14 points down. Looking at the daily charts, we can observe that the Nifty ended in the red for the second straight day. Trading is in a descenading channel and we expect it to consolidate within this channel. There may be a bounce towards the main hourly moving averages in the 19690-19700 area, from where we expect renewed selling pressures. On the weekly charts, the Nifty ended in the red after four straight weeks of gains, also suggesting that the Nifty may consolidate. The Momentum indicator has a negative crossover which is a sell signal and hence the pullbacks may be difficult to sustain. Overall, the short-term outlook remains in the 19500-20000 range. Key support levels to watch for are 19550- 19500 and on the upside 19700 - 19750 is the immediate hurdle zone. Nifty after falling in the early part of the session, recovered part of the losses on July 28 and formed a high wave doji pattern after a small fall. On weekly chart, Nifty fell 0.5% over the week after gaining for the previous four weeks. 19575 becomes a crucial support for the Nifty below which a fall of another 2% could follow and the 17-week rally from the low of 16825 could be said to have ended. 19750 could be a resistance for the near term.