Nifty Technical Outlook: Momentum indicators suggest a positive trend

By Jose Mathew. T

(This technical analysis is based on the market closing on July 10)

The Nifty closed at 24,324.45, down by 108.75 points or 0.45%. The index will likely continue its downtrend if it falls below the intraday support level of 24,300.

During the last session, Nifty opened at a record high of 24,459.80 but quickly lost momentum, plunging to an intraday low of 24,141.80. It recovered slightly in the afternoon, closing at 24,324.45. Most sectors ended negatively, with notable declines in auto, media, metal, and PSU banks. Market breadth was weak: 822 stocks rose, 1,709 fell, and 106 remained unchanged. Top gainers included ASIANPAINT, SBILIFE, DIVISLAB, and BRITANNIA, while M&M, TATA STEEL, HINDALCO, and TCS were among the major losers.

Positive trend

Technically, momentum indicators suggest a positive trend as Nifty remains above its long-term and short-term moving averages. However, the formation of a black candle on the daily chart and a close below the previous day's mark indicates a negative bias. The index has short-term support at 24,250; falling below this could extend the negative trend. The nearest intraday resistance is at 24,400; surpassing this level is essential for a pullback rally.

Intraday Levels:

Support: 24,300, 24,225, 24,150
Resistance: 24,400, 24,475-24,550 (15-Minute Charts)

Positional Trading:

Short-term support: 24,250-23,800
Resistance: 24,750-25,250

In the last trading session, Bank Nifty closed at 52,189.30, down by 379.50 points. Technically, momentum indicators point to a negative trend, with the index closing below short-term moving averages and forming a small black candle on the daily chart, indicating a bearish bias.

Key Levels to Watch:

Support: 52,100, 51,900, 51,700
Resistance: 52,350, 52,600, 52,850

A close below the 51,900 support level could extend the downtrend. Otherwise, expect consolidation between 51,900 and 52,700. Positional traders should monitor short-term support at 51,900-50,650 and resistance at 53,250-54,500.