Analyst Somesh View - Closing Comments on 29th JULY 2021

2021-07-29 18:28:37 By Somesh

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Nifty formed bullish candle indicates that the closing was higher than the opening tick. Nifty as it continued the range bound move.

Nifty hit an intraday high of 15817 and a low of 15737 after opening higher at 15762. Nifty rose 69 points to close at 15778.

Nifty traded higher and remained range-bound amid volatility throughout the session, forming a small bullish candle on the daily chart. Metals led the charge with a 5 percent rally, followed by IT with 1.4 percent gains. Select banking and financials also gained but the selling pressure in FMCG and select auto stocks limited upside.

On the monthly F&O expiry day, Market witnessed a smart pullback rally, although the July series has been volatile with a momentum of nearly 450 points. While the sectoral performance in the current month series was mixed with Realty and Metal indices gaining over 13 percent, Auto and Energy indices lost ground and shed nearly 6 percent. 

Nifty continued its range-bound move as the trading range on expiry session remained somewhat narrower with 79 points which resulted in a small bullish candle.

The trend still remains sideways without any directional clue. Typically, in sideways phases, moving averages will also fail to provide any clue as the index often crisscrosses these averages without any utility to forecast.

Nifty 15632 is the level to watch out for on the downside. A breach of it can lead to a sharp corrective downswing.

Similarly, unless 15962 is decisively cleared on the upside, a sustainable upmove can't be witnessed. However, weakness in the next session can be expected if the index closes below 15737 level, which may initially lead to the test of 50 day simple moving average whose value is placed around 15670. Some stability beyond 15820 can, however, strengthen the intraday strength towards 15880/15962.

Traders should remain neutral till the Nifty registers a strong breakout in either direction.

Sector Wise :- Metal index gained 5, while IT, PSU Bank and realty indices rose 1 to 3 percent. However, FMCG index was down 1 percent. Midcap and smallcap indices rose 0.4/0.9 percent.

 


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