TECHNICAL ANALYSIS: Nifty above long-term and short-term averages

Momentum indicators show a positive trend; Nifty is above its long-term and short-term moving averages; the index formed a black candlestick on the daily chart, closing below the previous day’s close, indicating a negative bias.

By JOSE MATHEW. T

(Based on the market closing of July 11)

Nifty closed 8.50 points (0.03%) lower at 24,315.90. If the index closes below the intraday support level of 24,250, a continued decline is likely.

Nifty opened at 24,396.60 but failed to maintain the upward momentum, falling to an intraday low of 24,193.80. In the afternoon session, the index rebounded, closing at 24,315.90.

Media, FMCG, banks, and IT sectors were the main gainers. Realty, pharma, auto, and financial services sectors faced losses. A total of 1452 stocks rose, 1073 fell, and 113 remained unchanged, indicating a broadly positive market.

ONGC, BPCL, Coal India, and ITC were the top gainers in the Nifty index, while Tata Consumer, Bajaj Finance, M&M, and Divis Labs suffered the most losses.

Positive trend

Momentum indicators show a positive trend. Nifty is above its long-term and short-term moving averages. The index formed a black candlestick on the daily chart, closing below the previous day’s close, indicating a negative bias. The index has short-term support at 24,250. If it closes below this level, the negative trend may continue today. The nearest intraday resistance is at 24,400. For a pullback rally, the index needs to surpass this level.

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

Bank Nifty

Bank Nifty closed 81.35 points higher at 52,270.65. Momentum indicators show a negative trend. The index is below its short-term moving average and formed a small black candlestick on the daily chart, closing below the previous day’s close. The long lower shadow suggests buying interest near the support area. The index has intraday resistance at 52,350. If the index moves above this level, a positive trend may continue in the coming days. Otherwise, it may consolidate above the support level of 51,900 for a few days.

Intraday Support Levels:

52,100 - 51,900 - 51,700

Resistance Levels:

52,350 - 52,600 - 52,850 (15-minute charts)

For Positional Traders:

Short-term support: 51,900 - 50,650
Resistance: 53,250 - 54,500