Nifty predictions July 27: Index may face resistance at 19,880; Bank Nifty in consolidation phase
US Federal Reserve hiked interest rates by 25 basis points (bps), in line with expectations. The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading higher at around 19,850 level as compared to Nifty’s previous close of 19,778.30.
On Wednesday, the benchmark indices ended over half a percent higher each. The Sensex closed 351.49 points, or 0.53%, higher at 66,707.20, while the Nifty50 ended with a gain of 97.70 points, or 0.50%, at 19,778.30. The Bank Nifty witnessed a relative underperformance for most part of the day, but it recovered gradually towards the end and managed to close above the 46,000 mark.
The broader markets continued to witness buying interest. The Nifty Midcap index managed to end at record high. “The buying interest in the broader markets hints at a continuation of the uptrend and thus, traders should look for stock specific opportunities and trade with the trend," said Ruchit Jain, Lead Research, 5paisa.com.
Also Read: Gift Nifty, Asian markets to US Fed rate hike - key triggers for Indian stock market today On the daily charts, Nifty formed a bullish candlestick with a small upper shadow. “Nifty has seen a minor correction in the last few sessions and has done with the minimum retracement of the previous upmove. The retracement support is placed in the range of 19,700-19,600 from the index has seen a pullback for now.
Now till this support is intact, the index could either see some time correction or resume its uptrend to surpass the recent high," Jain said. Derivatives data show FII’s have long positions in the index futures segment. The options data hints at support at 19,700 for the expiry day while open interest data is scattered in
. Read more on livemint.com
