The Indian stock markets are likely to open higher despite mixed trends from global markets. GIFT Nifty also indicates a gap-up start, trading at 24,416 with a premium of 156 points from its previous Nifty futures close.
On Thursday, the Sensex gained 579.48 points or 0.75% to close at 77,502.12, while the Nifty 50 rose 169.85 points or 0.71% to settle at 24,175.70.
The Indian rupee opened higher by 18 paise at Rs. 95.21 per dollar on Friday versus Thursday's close of Rs. 95.39.
Foreign institutional investors (FIIs) continued to pare their exposure with net sales of Rs. 311.82 crore, while domestic institutional investors (DIIs) remained net buyers in Indian equities on July 2, buying shares worth Rs. 1,784.40 crore.
Technically, the Sensex formed a bullish candle on daily charts and is maintaining an uptrend continuation pattern on intraday charts, which is largely positive.
"For day traders, 77,200 would act as key support zones. Above these levels, the market could continue its positive momentum towards 77,800-78,200. Conversely, below 77,200, sentiment could turn negative. In that case, the market could retest levels of 76,900-76,500," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Nifty 50 has now gained for the second consecutive session while forming a bullish candle with higher highs and higher lows, signalling continuation of the ongoing uptrend.
The 23,800 support zone has emerged as the buying interest area, where multiple technical indicators-including the previous gap area, the lows of the past two weeks and the 20-day and 50-day exponential moving averages (EMAs)-have converged.
"Going ahead, bias remains positive, and the index is to head towards 24,260 and 24,350 levels in the coming session being the high of last month and previous gap area. With immediate support placed at Thursday gap area of 24,000-24,050," said Bajaj Broking.
"Key observation in the daily chart is that the index has generated a bullish crossover of 20 and 50 days EMA highlighting strength. The index has key support around the 23,900-23,800 levels holding above the same will keep the bias positive and index to gradually head towards 24,500-24,600 levels in the coming weeks," the brokerage added.
On Thursday, Bank Nifty ended flat at 58,031.65 on Thursday, forming a bearish candle on the daily chart with shadows on both sides, indicating indecisiveness.
Bank Nifty, however, remained relatively subdued compared to the broader market as gains were concentrated in IT stocks.
"Going ahead, a move above last week's high of 58,700 will open further upside towards 59,200 and 60,000 levels in the coming weeks, being the 138.2% and 150% external retracement of the previous decline from 57,456 to 52,783," said Bajaj Broking Research.
The brokerage added that failure to sustain above last week's high could keep Bank Nifty range-bound between 57,000 and 58,500 in the near term.
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be risky, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.