Sensex Continues To Show Upward Trend: These Stocks Prices Are Increasing (Find Out Why?)
Nifty’s Upward Journey
While achieving this, it witnessed a minor profit booking near the trendline.
The next washout phase will be 17750-17800 as it is crucial to observe how the structure develops near this make or break zone.
It is advised to the Nifty traders to book partial profit at current level & hold the rest of the position with reversal trailing to 17500.
Before closing, the USDINR spot closed 11 paise higher at 79.63, thanks to demand for dollars from oil marketing companies and importers.
It is said that there may have been some RBI intervention at lower levels to build reserves.
To sum it up, bias remains at a range between 79.00 and 80.00 levels on spot.
Selling Pressure At Higher End
That being said, Nifty continues to remain above the consolidation on the daily chart, which suggests a continuation of the up trend in the market.
When it reached the higher end, it had faced a bit of selling pressure leading to a close around the day’s low.
Expert’s Suggestion For Traders
Experts say that this latest rally may extend towards 17750-17800, which is also the point where crucial trendline resistance is placed.
If we talk about the support, it is there at 17450-17500 on the lower end.
According to Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, the investors cheered the US inflation data for July.
As it came in below the estimate and raised hopes that the Federal Reserve may not be that aggressive in hiking interest rates in its next meeting.
This has caused the optimism spread across Asian markets including India where investors lapped up banking, IT & realty stocks.
On the other hand, traders have also been drawing comfort from the falling crude oil prices.
At the same, FII inflows into the local shares in the last few sessions.
It appears that the Nifty is trading near its important resistance level technically forming a small bearish candle.
Notably, 17600 would be the key level to watch out for the traders.
According to the overall chart structure, if the market sustains above the same then breakout continuation formation could continue till 17700-17750.
On the other side, a sharp intraday correction is possible if the index trades below 17600 and the index could slip till 17540-17450.
At the time of writing this article on Friday, 1:49, 17717 mark, up by 0.33% from the previous close.
On Thursday, Indian benchmark indices ended on strong note with Nifty closing above 17600 led by IT, realty, banking names.
The Sensex was up 515.31 points or 0.88% at 59,332.60, and the Nifty was up 124.20 points or 0.71% at 17,659.00 at yesterday’s closing bell.
During that session, around 1772 shares have advanced, 1530 shares declined, and 138 shares remain unchanged.
If we talk about the gainers, Axis Bank, Bajaj Finance, HDFC, Tech Mahindra and TCS emerged as major Nifty gainers.
On the flip side, Tata Consumer Products, Apollo Hospitals, ITC, Hindalco Industries and NTPC were included in the list of losers.
All in all, apart from FMCG, all other sectoral indices ended in the green with bank, capital goods, Information Technology, PSU Bank and realty up 1-2 percent.