Nifty predictions July 25: Immediate support for Nifty seen at 10-DEMA of 19,650

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Nifty indicate a gap up opening for the Indian benchmark index. The Gift Nifty was trading flat at around 19,713 level as compared to Nifty’s previous close of 19,672.35. The Nifty index witnessed a bout of profit booking in the previous session after mixed Q1 results from some companies and fell for the second consecutive session.

As the results season is peaking, traders may have started unwinding their long positions, pressurising the Nifty. The index formed a negative candle on the daily chart with minor upper shadow.  “Technically, this pattern indicates short term weakness in the market with sell on rise opportunity. Nifty is currently placed at the immediate support of 10 day EMA at 19,650 levels and the important lower support of 20 day EMA is placed around 19,450 levels.

The said 20 day EMA has been holding since past three months and has offered support for Nifty to witness upside bounces from it in the past," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. The positive chart pattern like higher tops and bottoms is intact as per daily chart and present weakness could be in line with the new higher bottom of the sequence. Still there is no confirmation of any bottom reversal forming at the lows, Shetti added saying that the short term trend of Nifty remains weak.

Also Read: Gift Nifty, Asian markets, Chinese economic stimulus to US stocks rally - key triggers for Indian stock market today Kunal Shah, Senior Technical & Derivative analyst at LKP Securities said that the bears currently had the upper hand in the market, and the index was facing strong resistance at the 19,800 level, where aggressive call writing was observed. “This resistance zone has become a significant hurdle for the bulls. If