Trade Setup For July 17: Nifty Crucial Support At 24,900–25,100
A failure to decisively breach the 25,255-resistance zone may result in a consolidation phase within the 25,000–25,250 range in the upcoming sessions, says Bajaj Broking.
The crucial support for the NSE Nifty 50 is placed at 24,900–25,100 and a sustained breakdown below this demand zone can open the door for a deeper corrective move, according to Bajaj Broking Research.
The highs of the last two sessions are identical at around 25,255, which also coincides with the 20-day exponential moving average, it said. "A move above the same will open up further upside towards 25,500-25,600 levels in the coming weeks."
The Nifty formed a doji candlestick pattern with shadows in either direction, signalling consolidation amid stock-specific action. A failure to decisively breach the 25,255-resistance zone may result in a consolidation phase within the 25,000–25,250 range in the upcoming sessions, Bajaj Broking said.
"We believe that 25,100 will remain as a key support zone for traders. As long as the market trades above this level, the bullish sentiment is likely to continue," Shrikant Chouhan, head of equity research of Kotak Securities, said.
On the higher side, the market can bounce back to the 20-day simple moving average or 25,300. Further upside may also push the market up to 25,450, he said.
"Conversely, below 25,100, the sentiment could change. If the market slips below this level, it could decline toward the 50-day SMA or the 25,000-24,930 zone," Chouhan added.
The Bank Nifty finds key short-term support at 56,000–55,500, according to Bajaj Broking.
Market Recap
India's benchmark indices ended flat on Wednesday, supported by strength in Infosys Ltd., Mahindra & Mahindra Ltd. and State Bank of India that offset a wider decline amid a dip across Asian markets due to a pickup in US inflation.
The NSE Nifty 50 ended 16.25 points or 0.06% higher at 25,212.05, while the BSE Sensex closed 63.57 points or 0.08% up at 82,634.48.
Currency Update
The Indian rupee closed weaker on Wednesday, slipping by 13 paise to trade at 85.94 against the US dollar after the currency had appreciated slightly a day ago.
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