Nifty predictions July 26: Downside momentum slowing down for Nifty; Support for Bank Nifty seen at 45,500
Nifty indicates a higher start for the Indian benchmark index. The Gift Nifty was trading flat at around 19,724 level as compared to Nifty’s previous close of 19,680.60. On Tuesday, domestic indices ended volatile session flat amid gains in metals and auto stocks.
The Sensex ended 29.07 points, or 0.04%, lower at 66,355.71, while the Nifty settled the day 3.35 points, or 0.02%, higher at 19,675.70. A small negative candle was formed on the daily chart with minor lower shadow. Tuesday's candle pattern was formed beside the similar candle of the previous session.
“Technically, this pattern indicates a choppy movement in the market with weak bias. Nifty is currently showing signs of slowing down of downside momentum and is placed at the support of 10 day EMA around 19,650 levels," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. The positive chart pattern like higher tops and bottoms is intact as per daily timeframe chart and the market is currently in line with new higher bottom formation, which needs to be confirmed, he added.
Also Read: Gift Nifty flat, Asian markets mixed ahead of Fed policy - key global cues for Indian stock market today The daily chart indicates a downward consolidation, with the price falling below the rising trend-line. “The RSI shows a bearish crossover. Notably, the support level at 19,550 is crucial, and if breached, the index could further decline towards 19,300.
Conversely, resistance is positioned at 19,800 on the higher side," said Rupak De, Senior Technical analyst at LKP Securities. Also Read: Day trading guide for today: Six buy or sell stocks for Wednesday — July 26 Bank Nifty faced selling pressure as it slipped below 46,000. “Profit booking has been evident for the past
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