Nifty Call: Stay away from the market
Nifty 50 July Futures (16,866)
Domestic benchmark indices rose in early trade, tracking strong gains in US markets overnight. As of the writing of the report, Nifty 50 is up 1.3 per cent and is trading at 16,857.
There is resistance in the 16,850-16,900 area on the longer term chart. Hence, a reversal to around 16,900 cannot be ruled out. So one has to be alert.
In Asia, major indices are in the green, except for the Hang Seng (20,596, down 0.32 per cent). Nikkei 225 (27,760), Shanghai Composite (3,293) and Kospi (2,431) are in the range of 0.16-0.60 per cent.
In the US, the Dow Jones Industrial Average (32,197) was up 1.37 per cent on Wednesday after the US Federal Reserve hiked interest rates by 75 bps. The critical resistance is at 32,400. A break above this would open the doors for a rise to 32,800-33,000.
Nifty 50 July futures (16,866) are up 1.29 per cent. Resistance is at 16,900-16,930 which needs to be watched today. The contract has to cross this barrier in order to increase the move up.
An inability to rise above 16,930 could drag the contract down to 16,750. The 16,750 level is a strong support. A break below this would turn the outlook bearish to see a sharp decline to 16,500. A breakout on either side of the 16,750-16,930 range will determine the next move. We recommend staying out of the market.
stay out of the market.
Supports: 16,750 16,500
Resistance: 16,930, 17,000
Published on July 28, 2022