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The Nifty 50 index experienced a day of mixed signals, ultimately closing moderately lower amidst volatile trading conditions. After demonstrating an upside breakout from a consolidation pattern in the previous session, the index struggled to maintain its upward momentum on July 9th. Despite the lackluster performance, the Nifty 50 managed to stay above the downward-sloping resistance trendline on the hourly chart, a factor that continues to offer a degree of technical support. Furthermore, the index displayed resilience by consistently defending the 25,400 level, establishing this point as a potential immediate support zone. Technical analysts are also closely watching the 25,300 level, which is being viewed as a key support level based on a shift in market polarity. On the upside, the ability of the Nifty 50 to sustain above 25,500 is considered crucial. Successfully maintaining this level could pave the way for a test of the 25,600–25,700 zone, which is expected to act as an immediate resistance area, followed by the psychological barrier of 26,000, according to market experts. The day's trading session saw the Nifty 50 reaching an intraday high of 25,549 and a low of 25,424 before ultimately closing at 25,476, a decrease of 46 points from the previous close. The daily charts revealed the formation of a bearish candle characterized by sizeable upper and lower shadows, a pattern that is typically indicative of a volatile and rangebound session. In addition, the Moving Average Convergence Divergence (MACD) indicator has presented a negative crossover accompanied by a weakening histogram, which could be interpreted as a sign of diminishing bullish momentum. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, provided his insights on the current market scenario, noting that the short-term trend continues to be choppy. However, he emphasized that the near-term trend of the Nifty 50 remains positive overall. Shetti cautioned that further weakness from the current levels could potentially lead to a retest of the lower support level at 25,300. Conversely, he stated that a sustained move above the upper range of 25,550 could unlock short-term upside potential, potentially pushing the index towards 25,700. An analysis of the weekly options data suggested that the 25,500 level is expected to serve as a pivotal zone for the Nifty 50 in the near term. More broadly, the expected trading range for the index in the short term is anticipated to be between 25,000 and 26,000. The maximum Call open interest was concentrated at the 25,500 strike price, followed by the 26,000 and 25,600 strikes. Interestingly, the 25,500 strike also held the maximum Put open interest, followed by the 25,400 and 25,000 strikes. In terms of option writing activity, the maximum Call writing was observed at the 25,500 strike, followed by the 25,600 and 25,550 strikes. The maximum Put writing, on the other hand, was seen at the 25,500 strike, followed by the 24,900 and 25,000 strikes.
The Bank Nifty also experienced a decline, closing 43 points lower at 57,214. The trading activity for the day remained confined within the previous day's range, resulting in the formation of a Doji candlestick pattern on the daily charts. This pattern is often interpreted as a sign of indecision among market participants, suggesting that neither the bulls nor the bears have a clear advantage. Despite the lackluster performance, the index managed to remain above the 10-day and 20-day Exponential Moving Averages (EMAs), which is generally viewed as a positive technical indicator. Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, offered his analysis of the Bank Nifty, stating that the 20-day EMA zone of 56,800–56,700 is likely to act as immediate support for the index. Looking ahead, Shah suggested that a sustained move above the 57,500 level could trigger a sharp upside rally, potentially pushing the index towards 58,200, followed by 58,600 in the short term. Meanwhile, the India VIX, often referred to as the "fear index," continued its downward trend for another session, remaining in the lower zone. This sustained low level of volatility is generally seen as a positive sign for the bulls, indicating a relatively stable and optimistic market environment. The India VIX decreased by 2.09 percent to 11.94, marking its lowest closing level since July 24, 2024. This decline in the fear index suggests that market participants are becoming increasingly comfortable with the current market conditions and are less concerned about potential risks. The disclaimer provided at the end of the article emphasizes that the views and investment tips expressed by the investment experts on Moneycontrol.com are their own and do not necessarily reflect the views of the website or its management. Moneycontrol.com advises users to consult with certified experts before making any investment decisions, highlighting the importance of seeking professional financial advice before engaging in any investment activities. This is standard practice for financial news websites to protect themselves from liability and ensure that readers understand the information is for informational purposes only and not to be taken as investment advice.
The article presents a comprehensive technical overview of the Nifty 50 and Bank Nifty indices, providing valuable insights into potential support and resistance levels, as well as key technical indicators. The analysis incorporates the views of multiple experts from different financial institutions, offering a well-rounded perspective on the current market situation. The article also incorporates options data to gauge market sentiment and identify potential trading ranges. The inclusion of the India VIX adds another layer of analysis, providing insights into market volatility and investor sentiment. Overall, the article provides a balanced and informative assessment of the Indian stock market, equipping readers with the knowledge necessary to make informed investment decisions. The article emphasizes the importance of technical analysis in understanding market trends and identifying potential trading opportunities. The use of candlestick patterns, moving averages, and the MACD indicator provides a framework for analyzing price movements and identifying potential buy or sell signals. The article also highlights the importance of considering both fundamental and technical factors when making investment decisions. The opinions of experts from different financial institutions provide a diverse range of perspectives, allowing readers to gain a more comprehensive understanding of the market. The article serves as a valuable resource for investors seeking to navigate the complexities of the Indian stock market and make informed investment decisions. The discussion of option chain analysis provides investors with information about potential support and resistance level at various strike prices based on open interest, Put Call Ratio and maximum pain analysis. The mention of 50-period EMA, 10-day EMA and 20-day EMA gives readers understanding of importance of these technical indicators for short-term trading. The India VIX analysis helps investors to understand the volatility and investors fear index. The article acts as a source of market analysis and can be helpful in decision making, along with external sources.
This article can be helpful for a lot of people looking for financial advice and market overview. Readers should however consult certified experts before actually taking any investment decisions. The options chain analysis also provides a wide range of information to investors. These may include identification of support, resistance and possible price moves in market. The article is also a good source of information for traders who are looking for various trends in the market. The analysis of Bank Nifty and Nifty also help investors in deciding their position on Indian Stock market. Overall the technical analysis of the article offers some insight on the market conditions for traders and investors. The expert views from HDFC Securities and SBI Securities provide clarity on future market trends. The article is informative and also includes disclaimer that readers should consult financial experts for the authenticity of content.