Nifty Strategy for 27th July | Nifty Trades Flat, PSU Banks Shine

On Wednesday, the benchmark indices experienced a rally, with the Nifty closing up by 98 points, and the Sensex gaining 351 points.

Almost all major sectoral indices were trading in the green, with the PSU Bank index performing particularly well and gaining over 1.25%.

Check out this short video for detailed market update: Market Ready by Kotak Securities

Today, Indian share markets are trading on a flattish note.

At the time of writing, the BSE Sensex is trading higher by 44 points. Meanwhile, the NSE Nifty is trading up by 37 points.

Among stocks, Bajaj Finserv and Sun Pharma are the top gainers from the Sensex, while Tech Mahindra and M&M are the top losers.

Here’s a rundown of today’s expected market movements…

Nifty Technical Analysis:

Technically, the Nifty index opened with a gap down after a short-term correction but witnessed a morning rally yesterday.

Analysts believe that the index has completed one phase of a pullback rally, and a fresh uptrend rally is possible only after it breaches the level of 19850.

In such a scenario, the index may extend higher towards 19900-19950.

On the other hand, selling pressure is likely to increase below 19700, and the market may retest 19650-19625 levels.

Given the current market structure's volatility, level-based trading would be the ideal strategy for day traders.

The market is at an interesting technical juncture, with upside expected above 19992 and weakness below the level of 19700.

Trading Strategy for Nifty:

For day traders, consider long positions if the Nifty crosses 19850 with targets around 19900-19950 levels.

On the downside, short positions can be considered if the index falls below 19700 with targets near 19650-19625 levels.

Keep a close eye on the key resistance and support levels mentioned.

Bank Nifty Analysis:

The Bank Nifty remains above 45800 levels, which is a positive sign.

However, if it breaks below this level, it could experience a sharp decline towards 45600/45500 levels.

On the upside, if it sustains above 46200, it may continue to rally higher towards 46500 levels.

Nifty IT Index:

If the Nifty IT index falls below 29600 levels, it may slide further towards 29200 or 29000 levels in the near term.

The upside is only expected above the 30000 level.

So, for the Bank Nifty, watch for breakouts above 46200 or below 45800 to initiate trading positions accordingly. In the Nifty IT index, consider short positions if it falls below 29600 and long positions if it crosses above 30000.

Please note that the market remains dynamic, and risk management should be a priority when executing trading strategies.

Stay alert for potential movements in the PSU Banking sector.

See you tomorrow!

Kotak Securities

Disclaimer: The information provided in this article is based on technical analysis and does not constitute financial advice. Traders should exercise their own judgement and consult with financial professionals before making any investment decisions.