Trade Setup For July 24: Nifty Faces Immediate Hurdle At 25,325
The Indian stock market has been on a tear lately, with the NSE Nifty 50 and BSE Sensex indices scaling new highs. As investors and traders look to the future, they are keenly awaiting the Q2 earnings season, which is expected to bring some clarity to the market’s direction.
Key Support and Resistance Levels
According to Shrikant Chouhan, head equity research at Kotak Securities, the 50-day simple moving average at 25,060 and 25,100 will act as key support zones for the Nifty. The sentiments will continue to be bullish if the index remains above these levels.
On the higher side, 25,325 could serve as the immediate hurdle for the bulls, while a successful breakout above these levels could push the market towards 25,400–25,475 levels.
Bullish Crossover on the Daily Chart
Chouhan’s comments are supported by the relative strength index (RSI) on the daily chart, which is in a bullish crossover and rising above the 50 mark. This further reinforces the positive momentum in the market.
Expert Analysis
Rupak De, senior technical analyst at LKP Securities, is also optimistic about the short-term outlook. ‘On the higher side, Nifty may move towards 25,500, while support is placed at 24,900. A break below this level could weaken the current trend,’ he said.
Market Performance
India’s benchmark equity indices closed higher on Wednesday, led by shares of HDFC Bank Ltd. and ICICI Bank Ltd. The NSE Nifty 50 ended 159 points or 0.63% higher at 25,219.90, while the BSE Sensex closed 539.83 points or 0.66% up at 82,726.64.
The Indian rupee, however, weakened against the US dollar, ending trade on Wednesday four paise weaker at 86.41.
Conclusion
In conclusion, the Indian stock market is expected to remain bullish in the short term, with key support and resistance levels at 25,060, 25,100, and 25,325. Investors and traders should keep a close eye on the market’s reaction to these levels, as well as the Q2 earnings season, which is expected to bring some clarity to the market’s direction.
Remember to stay informed and adapt your trading strategy accordingly. With the right information and analysis, you can make informed decisions and achieve your investment goals.
