NIFTY OUTLOOK FOR 4 JULY 2024

Summary

On July 3, the Indian equity indices experienced a positive trading session, with both the Sensex and Nifty closing higher. The Nifty managed to close above the 24,250 mark, despite a lack of follow-through momentum at the beginning of the session. This upward movement was driven by buying across most sectors, except media.

Market Highlights

• Sensex: Closed at 79,986, up by 545 5points.
• Nifty: Closed at 24,286, up by 162.70 points.

Sector Performance

• Top Performing Sectors: BankNifty, Metals, PSU Banks
• Broader Markets: The Midcap and Smallcap indices outperformed the Frontline Index with gains of 0.79% and 1.03% respectively.
• Sectoral Indices: All sectoral indices, except media, ended in the green. Power, capital goods, bank, and metal sectors were up 1-2%.

Technical Analysis

• Nifty:

  • The Nifty has regained bullish momentum, closing above the 24,250 mark.
  • The index showed resilience, maintaining a range and closing at 24,286.50.
  • A Dragonfly DOJI candlestick pattern at record levels suggests a possible pause or consolidation.
  • On the hourly chart, the Nifty shows a probable negative divergence in RSI, with potential support at 24,200. A move below this could drag the index towards 24,130.
  • Immediate resistance is seen at 24,500, and maintaining above 24,000 will likely support the bullish trend.

• Bank Nifty:

  • Strong upward momentum, closing above 53,000.
  • The daily chart indicates a strong uptrend with higher highs and higher lows.
  • Immediate support at 52,500 offers an ideal entry point for fresh long positions on any dip.

Market Breadth

• Advances: 2075 shares
• Declines: 1372 shares
• Unchanged: 66 shares

Major Gainers

• Tata Consumer Products
• Adani Ports
• Kotak Mahindra Bank
• Axis Bank
• HDFC Bank

Major Losers

• TCS
• Titan Company
• Reliance Industries
• Tata Motors
• Hindalco Industries

Conclusion

The Indian equity markets displayed a strong performance on July 3, driven by broad-based buying across sectors except for media. The positive sentiment was reflected in the significant gains of major indices. The Nifty's ability to sustain above 24,000 and close in on 24,500 suggests a continuation of the bullish trend in the near term. Bank Nifty's performance also indicates strong buying interest, particularly at lower levels. However, traders should watch for potential consolidation or minor corrections, especially with technical indicators showing divergence.