Nifty predictions July 17: Next upside target seen at 19,800; Support for Bank Nifty at 44,700
Indian market is likely to open on a cautious note on Monday following weakness in Asian peers after key economic data from China, while corporate earnings also dictate the sentiment. The trends on Gift Nifty indicate a higher start for the Indian benchmark indices. The Gift Nifty was trading at 19,629 as compared to Nifty’s Friday’s close of 19,564.50.
On Friday, the Indian benchmark indices, the Sensex and the Nifty, ended at their fresh record closing highs led by gains in shares of IT majors. Positive global cues amid expectations that the US Federal Reserve may pause interest rate hikes after July, also boosted domestic market sentiments. Also Read: Gift Nifty, Asian shares, cautious Fed to corporate results, among key global cues for Indian stock markets “The controlled inflation in the US has instilled optimism among investors that a 25-bps rate hike would be adequate to stabilise the US economy.
This improved prospect has contributed to the strong buying of Indian IT stocks despite muted Q1 earnings. Furthermore, the broad-based rally in the domestic market was supported by India's consecutive third month decrease in wholesale prices, along with the positive involvement of FIIs," said Vinod Nair, Head of Research at Geojit Financial Services. On the technical front, Nifty saw a breakout from the narrow range of 19,300-19,500 levels.
The index ended above the crucial resistance of 19,500. “Nifty formed a long bull candle on the daily chart with minor lower shadow indicating an attempt of decisive upside breakout of the narrow range movement at 19,300-19,500 levels for the last few sessions. Nifty on the weekly chart formed a long bull candle that has negated the bearish candle of last week and closed higher.
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