NIFTY Analysis for 24 July 2019

  • Today’s trading session was a range-bound session with 100 points range. Our previous analysis that 11300 levels would be intact and 11400 would be tested on higher side today were correct.
  • But the intraday movements were pretty volatile. Specially when NIFTY fell from around 11400 levels.
  • As per the end of day data of FII, there has been huge selling in the market by FII. NIFTY was only saved as DII pumped in huge amount into the market today.
  • But the question would as to how long DII would be able to support this market as FII has been into negative mode since the budget announcement.
  • Below are the figures for FII data:

    Equity : -2607.97 Crore
    Index Future : -599.11 Crore
    Index Option : -946.48 Crore
    Stock Future : – 293.84 Crore
    Stock Option : -17.43 Crore

  • For tomorrow, I feel that there would be a short-covering rally in Index heavy weights i.e. HDFC and HDFCBANK and this would support index.
  • Considering that tomorrow is the second-last session before current expiry, I don’t expect very big moves in market.
  • Support at 11280-11300 range is decent. Whereas on upper side, there would be resistance in 11370-11400 range.
  • For once, if we break 11400 and sustain for 15 mins, would be able to see 11500 levels very quickly.
  • Infosys as per my analysis should close above 815 in cash level for this expiry. This can also support index movement.
  • All markets are trading in green except India indicating that there is a definite outflow from market.
  • If I leave the Index heavy weight, other stock have already corrected decently. So sooner or later, they should change the trend.
  • Range for tomorrow for NIFTY would be 11300 to 11470.

Ankit Maheshwari

Ankit is an avid writer with experience of working Investment Banking domain for over 7 years. He has been tracking Indian markets for over 10 years now for educational and learning purpose.

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