Nifty predictions July 28: Support for Nifty seen at 19,550; Bank Nifty may correct further if it falls below 45,300

livemint.com:

equity market is expected to open on a cautious note on Friday following weak global cues. Gift Nifty was trading at 19,790 level as compared to Nifty’s previous close of 19,659.90. The domestic equity benchmark indices ended over half a percent lower on Thursday, the last day of the Nifty's July series futures and options (F&O) contracts.

The Sensex closed 440.38 points, or 0.66%, lower at 66,266.82 while the Nifty ended at 19,659.90, down 118.40 points, or 0.60% on Thursday. “Market is likely to consolidate given no clarity given by the US Fed on its future course of action, leading to mixed global cues. Overall strength continues in the market, with the likelihood of consolidation at higher levels," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Also Read: Gift Nifty, Asian markets, US GDP growth to ECB rate hike - key triggers for Indian stock market today On the technical front, Nifty formed a lower top and bearish candle on daily charts, indicating further correction from the current levels. The index faced resistance from the 61.82% Fibonacci retracement level (19,850) on the daily charts and started the next leg of the fall. The daily as well as hourly momentum indicator has a negative crossover which is a sell signal.

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas said that both price and momentum indicators are suggesting that there could be some weakness in the short term. “The daily Bollinger bands are also contracting, which points towards consolidation in the short term and thus we change our short-term stance from positive to sideways and the range of consolidation is likely to be 19,900 - 19,500," Gedia said. He is of the view that 19,550 –