StockEdge Morning Market Analysis - 26th July

The Nifty lost 7 points over the day to close at 24406. The market opened gap down due to international market weakness and then recovered. The key take away was that there was no follow up selling, and the index made its low in 1st 15 ins and thereafter stayed firm throughout. The Candlestick formed is also bullish. The auto index, Energy and the PSE were amongst the top performers. The advance declines were neutral and India Vix trades near the lower range at 12.6

Technically, there is not much change in the chart setup. As mentioned in earlier updates - the bulls will find support at lower levels, and the index is expected to oscillate between the Budget day range. Break on either side of the range will kick in fresh momentum, and the likeliness is that the upper range by the bulls will be broken after a consolidation. The studies remain positively placed. We just need some support from the heavyweights and the indices would be back on track. 24600 is still the important resistance number to track in the near term, while 24050 - 24150 remains the support area.

Coming to sectors - Bank Nifty is now close to the major support of 50000-50500, where multiple technical tools coincide. So keep an eye on this space.

The Pharma Index hits new high again yesterday and still strong. Further upside from the current levels can be expected.

IT index and the FMCG index is nicely consolidating while the index is in this pullback consolidation mode - hence remain strong pockets.

To conclude - Be stock specific and pullback and dips are buying opportunity.

Nifty

Support 24210, 24150

Resistance 24500, 24600

Bank Nifty

Support 50580, 50230

Resistance 51000, 51550

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