NIFTY OUTLOOK & TRADING TIPS FOR 3 JULY 2024

Indian Benchmark Indices:

• Sensex: Down 34 points or 0.04% at 79,441.
• Nifty: Down 18 points or 0.08% at 24,123.

Market Sentiment:

• Profit booking around 24,200 led to a close 100 points off the high.
• Sentiment favors selling on rallies until it moves above 24,250.
• Immediate support for Nifty is at 24,000; a fall below this might trigger a correction towards 23,850/23,700.

Global Influence:

• Mixed global trends, with the ECB showing caution regarding further rate cuts.
• Investors are closely monitoring the monsoon progress, the forthcoming Union budget, and the US election.
• Recent spikes in US Treasury yields and a gradual rise in crude oil prices are affecting market trends.

Sectoral Performance:

• IT stocks: Gained due to expected increases in discretionary spending.
• Auto stocks: Declined following lower-than-expected monthly volumes.
• Capital Goods, IT, Realty, Oil & Gas: Rose 0.3-1%
• Bank, Auto, FMCG, Power: Down 0.3-0.9%

Bank Nifty Index:

• Faced rejection at 52,400-52,500 levels.
• Remains in a sell-on-rise mode with next immediate support at 52,000-51,800.
• If it fails to hold this support, it might see further selling pressure towards 51,400-51,300.

Nifty's Performance:

• After a sustainable bounce from the lows on Monday, shifted into a choppy movement at new highs on Tuesday, closing lower by 18 points.
• Opened at a new all-time high of 24,236 but did not sustain the upmove.
• Formed a small negative candle on the daily chart at new highs, indicating a lackluster movement and market tiredness at new highs.
• Overall trend remains positive, with dips seen as buying opportunities.
• Immediate support is at 23,980, and the next resistance is around 24,400.

Market Activity:

• Fresh highs touched in early trades but failed to capitalize, slipping into the red.
• Weak European and Asian cues, along with negative sentiment in Dow Futures, fueled profit-taking in banking, telecom, and auto shares.
• Mid and Smallcap segments corrected by 0.78% and 0.45%, underperforming the Frontline Index.

Daily Stock Movements:

• Top Gainers: L&T, Wipro, Infosys, HDFC Bank, TCS
• Top Losers: Shriram Finance, Bharti Airtel, Kotak Mahindra Bank, Tata Motors, IndusInd Bank

Overall Market Breadth:

• 1,740 shares advanced
• 1,686 shares declined
• 72 shares unchanged

The strong uptrend is intact, and buying on dips is advised. Downside seems protected at 24,000, while 24,230 is an immediate resistance.