StockEdge Morning Market Analysis - 25th July

The Nifty lost 65 points over the day to close at 24413. the index was subdued, but the broader markets were firm. Nifty 500 saw 345 advances vs 155 declines only. The smallcap index gained 1.76%. Bank Nifty underperformed and was amongst the top losers.

Technically, The index has made a doji kind of candle on daily charts and closed right at its 13 period moving average. Note that this average has been respected al throughout since the 4th June election results were out. However, important strong support lies at 24050 - 24150 area 24550 - 600 as resistance. The bullish momentum will only pick up above 24600. What is more important in the current market scenario is the sector rotation. Strong stocks in strong sectors are performing and will continue to do so.

Looking at the global market scenario, there was a good sell off in international indices and we can expect a gap down opening on account of that. The bulls should step in around 24050 - 24150 zone. A break and a close below this level will damage the short term setup and index can go in for a deeper pullback to 23850 levels. The budget day range becomes important levels to watch out for which coincides with the technical levels.

Nifty Bank Bank Nifty has important support for 50950 - 51000. This was touched, and some recovery was seen from these levels.

To conclude - Stay very picky in your stocks and focus only on strong and quality.

Nifty

Support 24150, 24000

Resistance 24500, 24600

Bank Nifty

Support 51000, 50850

Resistance 51550, 51850

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