Indian benchmark indices are trading negatively amid volatility on July 19. After a sluggish open, the Nifty index retraced to 24,615, which is the 62 percent retracement level of yesterday's rally from 24,530 to 24,820.
For the second day in a row, IT and FMCG sectors held up while the broader markets looked jittery, as evidenced by the fall in the smallcap and midcap indices. Oil & Gas joined Realty and Metals in the list of underperforming sectors.
Nifty outlook
"While the medium-term trend for Nifty remains bullish, for the day, 24,560-24,540 is likely to act as a strong support. If these levels hold, the uptrend is likely to remain intact, and the index is expected to rebound towards the 24,780-24,840 zone and consolidate around the current levels," said Sudeep Shah, DVP and Head of Technical and Derivative Research at SBI Securities.
"Should it close the day at the current levels, it would result in the formation of a Dark Cloud Cover candlestick pattern on the daily timeframe," added Shah.
Shah notes that below 24,540 levels, fresh downside up to 24,430-24,380 can be witnessed.
Nifty Advance decline ratio, Rise in volatility
"Nifty's Advance-Decline Ratio is overwhelmingly negative at 9:41, while the PCR for the monthly expiry is at 1.08, down from 1.32. With an important event such as the Union Budget coming up next week, there is a gradual increase in volatility (India VIX)," he added.
Shah believes that as long as India VIX holds at 14, it could inch up towards the 16.50-17 levels in the forthcoming sessions.
1 Comment
Nikhil32024-07-21
red blood bath
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