NIFTY OUTLOOK FOR 1 AUGUST 2024

 

Market Overview

Indian benchmark indices continued their positive trend for the fourth consecutive session. The Nifty closed at 24,951.20, up by 93.90 points or 0.38%, while the Sensex ended the day at 81,741.34, gaining 285.94 points or 0.35%. The market maintained a positive bias throughout the day, closing near the session's high.

Technical Analysis

• Nifty:

  • A small positive candle formed on the daily chart with a minor upper shadow, indicating an attempt at an upside breakout around the 25,000 mark.
  • The pattern of higher tops and bottoms continues, with no immediate signs of a reversal. A decisive move above 25,100 could lead to a sharp upside, with immediate support at 24,750 levels.
  • On the hourly chart, the Nifty has given a consolidation breakout, and the RSI indicates a bullish crossover on both the hourly and daily timeframes. A fresh leg of bullishness is expected above 25,000, with support at 24,900. A break below this level could see a correction towards 24,750.

• Bank Nifty:

  • The index remained range-bound, especially ahead of the Federal Reserve meeting on the rate decision. It stayed below the 21 EMA, with the daily RSI showing a bullish crossover.
  • A sustained trade above 51,600 might trigger a rally towards 52,000-52,200, while support is placed at 51,200-51,000.

Sector Performance

• Top Performers:

  • Metals, Pharma, and Media: These sectors saw the highest gains, with each adding approximately 1%.
  • BSE Midcap Index: Added nearly 1%, showing strong performance.

• Underperformers:

  • PSU Banking Sector: Ended the session with a loss of 0.43%.
  • Smallcap Index: Ended marginally lower.

Top Gainers & Losers

• Top Gainers:

  • NTPC
  • Asian Paints
  • BPCL
  • JSW Steel
  • Tata Motors

• Top Losers:

  • Britannia Industries
  • Dr Reddy's Labs
  • Tata Consumer
  • Reliance Industries
  • Grasim Industries

Market Breadth

• Advances: 1,828 shares
• Declines: 1,613 shares
• Unchanged: 78 shares

Outlook

The Nifty is approaching the psychological barrier of 25,000. A sustained move above this level could push the index further towards 25,200, while on the downside, immediate support is seen at 24,800.

Bank Nifty's movement will likely be influenced by external factors, including the Federal Reserve's rate decision. A break above 51,600 could trigger a rally, with support at 51,000.