Indian equities and the bulls have ruled a positive market for the fifth straight session on Tuesday, Hopes of coronavirus vaccine and strong global cues helped the bulls to put up a smart show but a mixed trend was seen in the broader market space, signaling caution ahead.
Sell signals were generated on technical charts but momentum could fizzle out before 11202 levels, Hence, traders should trade with caution. India VIX fell by 1.14% to 24.42 levels. Overall, lower volatility is supporting the bullish stance with a higher market base.
An interesting thing visible on the charts was a buy signal triggered by the MACD indicator on the daily charts but we see a limited impact with the index near the overbought zone.
Now, undoubtedly the major worry should be the fact that institutions like the IMF and World Bank were forecasting slowdown and recession for the near future even before COVID–19 pandemic broke out. In such a scenario, economic recovery process shall get accelerated on the downside making the forthcoming recessions one of the worst and ideally financial markets should also be remained subdued and at least consolidate after the corrections but surprisingly they are heading higher and on the verge of making new lifetime highs after recovering all the post COVID losses.
There is a possibility of the Nifty showing profit booking from near 11202 levels in the next two or three sessions as per long-term charts like weekly and monthly timeframe and one should be careful about long-trading positions at market highs. Though momentum looked in favors of the bulls, traders should remain neutral as risk-reward ratios may not be in their favors.
The short-term trend continues to be negative and the next downside levels to be watched out for is around 11101/ 11088 -11008 and this can be achieved in the short term. The immediate support is placed at 11202 levels.
Nifty Future opened at 11186 as on 22.07.2020
For Intraday, Nifty Future has resistance at 11202 – 11230 Point; above which other resistance levels are at 11247 – 11260 Point with highly Volatile Trend,
Nifty Future has Downside support levels are at 11130 – 11101 Point; below 11101 Point, other support levels are at 11088 – 11008 Point.
I am positive for the next bullish trend only above at 11260 Point but be with the trend. Let the market decide further moves. As we are saying from many days, Buying is suggested in falls only…and it’s still a better strategy in the given Scenario…regarding Long term positions, it is preferable to remain cautious now.
If Nifty Future crosses at 11202 Point, again then the upper side target is quite high and it may touch at 11230 Point in the short term
Bank Nifty Future opened at 23124 as on 22.07.2020
For Intraday, Bank Nifty Future has resistance at 23188 – 23232 Point; above which other resistance levels are at 23303 – 23373 Point with highly Volatile Trend,
Bank Nifty Future has Downside support levels are at 23033 – 22880 Point; below 22880 Point, other support levels are at 22707 – 22636 Point.
I am positive for the next bullish trend only above at 23373 Point but be with the trend. Let the market decide further moves. As we are saying from many days, Buying is suggested in falls only…and it’s still a better strategy in the given Scenario…Regarding Long term positions, it is preferable to remain cautious now…!!
If Bank Nifty Future crosses at 23188 Point, again then the upper side target is quite high and it may touch at 23232 Point in the short term
Prediction on Stock specific Movement as on 22.07.2020
MUTHOOT FINANCE FO @ RS 1233
Positive Trend @ Rs 1233 / 1208 with Stop loss of Rs @ 1193 for the target near @ Rs 1260 – 1277 in short term
LUPIN FO @ RS 858
Positive Trend @ Rs 858 / 844 with Stop loss of Rs @ 833 for the target near @ Rs 868 – 877 in short term
AURO PHARMA FO @ RS 810
Positive Trend @ Rs 810 / 797 with Stop loss of Rs @ 790 for the target near @ Rs 823 – 830 in short term
CIPLA FO @ RS 666
Positive Trend @ Rs 666 / 660 with Stop loss of Rs @ 653 for the target near @ Rs 677 – 686 in short term
KOTAK BANK FO @ RS 1360
Negative Trend @ Rs 1360 / 1377 with Stop loss of Rs @ 1388 for the target near @ Rs 1344 – 1330 in short term
INFOSYS FO @ RS 940
Negative Trend @ Rs 940 / 949 with Stop loss of Rs @ 960 for the target near @ Rs 923 – 916 in short term
HCL TECHNO FO @ RS 655
Negative Trend @ Rs 655 / 663 with Stop loss of Rs @ 670 for the target near @ Rs 640 – 633 in short term
HDFC FO @ RS 1898
Negative Trend @ Rs 1898 / 1909 with Stop loss of Rs @ 1919 for the target near @ Rs 1866 – 1860 in short term
Disclaimer: The views expressed in the article above are those of the authors’ and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.