Nifty predictions July 19: Index may face resistance at 19,850; uptrend in Bank Nifty likely to continue

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Indian stock market is expected to extend gains and open higher on Wednesday amid positive global cues. Asian markets were trading mostly higher following a rally on Wall Street boosted by gains in technology and banking shares amid better than expected quarterly results from key banks. Trends on Gift Nifty also indicate a positive start for the Indian benchmark indices.

The Gift Nifty futures were trading at 19,809.50 level as compared to Nifty’s previous close of 19,749.25. On Tuesday, Indian benchmark indices extended their winning streak into the fifth consecutive session, settling at their fresh closing peaks amid positive global cues while the dollar traded near its one-year low level. The Sensex closed 205,21 points, or 0.31%, higher at 66,795.14 while the Nifty ended at 19,749.25, up 37.80 points, or 0.19%.

“The bulls continued to lift the market to new heights, but volatility emerged in the second half due to concerns over valuation. Rapid fall in the dollar index and a slide in the US 10-year yield is supporting liquidity in emerging markets," said Vinod Nair, Head of Research at Geojit Financial Services. He believes disappointing economic growth in China and improvement in the US market outlook are drawing attention to the Indian market with the IT sector as the contra bet.

Also Read: Gift Nifty, Asian markets gain following rally in US stocks; check out key global cues for Indian stock market On the technical front, Nifty witnessed profit booking at higher levels and closed lower than the opening levels. It formed a high wave type pattern after a rise, hinting at some consolidation. “A small negative candle was formed on the daily chart with minor upper and lower shadow.