Nifty technical view: The Indian stock market made a strong comeback on Friday after two days of weakness. The benchmark Nifty 50 index recovering rapidly from Intrade Low at the end of the session closing at around 25,461 of the day’s highest level. The Nifty declined by 0.69% on a weekly basis.
How will the mood of Nifty be on Monday, July 7, which levels will be important, will understand it from experts. But, before that, let us know what was special in the market on Friday and which factor will be eyeing the market on Monday.
Largecap stocks gained
Major shares like Bajaj Finance, Dr. Reddy’s and Infosys led the recovery and supported the Nifty. At the same time, selling pressure was seen in Trent, Tata Steel and Eicher Motors.
The Nifty Midcap and Smallcap index also declined at the beginning of the session, but both indices almost closed due to recovery in the second part of the day.
Sectoral trend and fund flow
All major index except the Nifty auto and metal on the sectoral front closed in the green mark. Oil and gas, realty, pharma and IT sectors saw the most shopping.
However, both domestic (DII) and foreign institutional investors (FII) were pure sellers in the cash market on Friday on the fund flow.
Market’s eye now on global events
Further investors will eye on two important global events on July 9- the minutes of the FOMC meeting of the US Trade Deadline and Federal Reserve. They may affect the global market perception.
Support and resistance level for Nifty
According to Nagraj Shetty of HDFC Securities, the Nifty has created a negative candle on the weekly chart. This indicates that the index is now on an important support zone, where the earlier resistance can now turn into support. He has described the next upside target 25,700 and 26,200 in two weeks, while 25,300 have been considered important support.
At the same time, the metaphor of LPK Securities also described 25,300 as important support. He says that as long as the index trades over it, it can remain fast. Target of 25,800–26,100 and resistance on 25,500 are being seen at the top.
Nandish Shah of HDFC Securities said that Nifty has made a bullish ‘hammer’ candle on the daily chart. This indicates that the recent correction may stop and the uptrend may resume. According to him, Friday’s low i.e. 25,331 will now serve as strong support. At the same time, the scope of 25,600–25,670 will be the nearest resistance zone.
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