Nifty predictions July 24: Index may find support at 19,700; Bank Nifty likely to see upside momentum above 46,400

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equity market is expected to open on a cautious note on Monday following a mixed trend in Asian peers. The trends on Gift Nifty suggests a negative start for the Indian benchmark index. The Gift Nifty was trading lower at 19,730 as compared to the Nifty’s Friday’s close of 19,745.00,  Nifty was just 9 points away from hitting the 20,000 mark last week.

However, the index witnessed a sharp decline on Friday after showing a sustainable upmove in the last six sessions.  The weakness in the index came on the backdrop of steep decline in the IT sector after weak guidance from Infosys, which interrupted the bull run in the benchmark indices. Also Read: Gift Nifty, mixed trend in Asian markets to Wall Street corporate earnings - key triggers for Indian stock market today Nifty formed a small negative candle on the daily chart at the lows with upper shadow. “This pattern indicates a short term top reversal pattern.

But, we need confirmation of follow-through weakness to call it a downward reversal pattern. As long as Friday's downside gap remains unfilled at 19,965 levels, the chances of further consolidation or weakness in the short term," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. Meanwhile, on the weekly timeframe chart Nifty formed a bull candle with a long upper shadow, which signals presence of stiff resistance at the 20,000 mark.  According to Rupak De, Senior Technical analyst at LKP Securities, the crucial support level for the Nifty lies at 19,700, marked by significant put writing.  “Should the index breach this level, it may lead to a substantial market correction.