Nifty Outlook for 26 July 2023

The indices continued to trade within a range while stock specific momentum continued during the day. In Tuesday’s session, Nifty witnessed some dip towards 19600 but it witnessed recovery from the lower levels and ended the day on a flat note.

Nifty Today:

Our markets have witnessed some pullback move in last few sessions as the momentum readings were highly overbought when the Nifty approached the 20000 mark. Now with the pullback move in last three sessions, the readings have cooled off a bit from the highs. Since the broader trend for the market is positive, this should just be seen as a correction within an uptrend. The index has retraced 23.6 percent of the recent upmove and it would be crucial to see if the index consolidates here and resumes the uptrend later. Hence, traders should look to trade with stock specific opportunities for now as even if the index goes through some time-wise correction, stocks could provide good short term returns in such a bull market. The immediate support is placed around 19650 where the index is trading now, followed by next support in the range of 19500-19450. On the flipside, 19800 would be seen as the immediate resistance above which the index would resume its upmove. 

      Stock specific momentum seen in market amidst consolidation in index

The Fed event on Wednesday evening and the monthly expiry on Thursday could lead to some volatility, thus traders should trade with proper money management and avoid aggressive trades. For intraday traders, buy on dip strategy should be approached and one should look for buying opportunities near supports rather than chasing the upmove.  
 

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

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