Market Outlook for 01 July 2024

Nifty Prediction for Tomorrow - 01st July

In the week gone by, Nifty rallied sharply and led by the index heavyweights and registered a new milestone to close above the 24000 mark. 

Our markets have seen a run up in last few days mainly led by buying interest from the FIIs wherein they formed long positions in the index futures segment and also rolled over most of the long positions to the July series. The overall rollover in Nifty was higher than last 3-months average while ‘Long Short’ ratio of FIIs at the start of the new series is over 80 percent.

However, the Client section is on the short side and if we look at overall positioning, then it seems that they are not willing to form longs at current levels while the FIIs already hold long heavy positions. Thus, it would be interesting to see the formation of new positions by market participants in the coming week.

Technically, the uptrend remains intact but the RSI on the hourly chart is indicating the possibility of a pullback move or a consolidation within an uptrend. In case of any such pullback, support will be seen around 23800 followed by 23600 mark. The positional support (20 DEMA) has now shifted higher at 23400. On the higher side, resistances are seen around 24200 followed by 24600.

Traders are advised to trade with a buy on dip approach on the index while one can prefer looking for stock specific opportunities with a positive bias. Amongst sectoral indices, stocks from the Oil & Gas sector have seen good price volume action and hence could see outperformance in the short term. 
 

                     Strong monthly close for Nifty above 24000 mark

Bank Nifty Prediction for Tomorrow - 01st July

Bank Nifty index registered a new record high above 53000 during last week, but it gave up some of the weekly gains in the last trading session. The hourly RSI on Bank Nifty has given a negative crossover while the broader trend remains positive.

Such setups lead to a pullback move within an uptrend which we saw in Friday’s session. Now the index has closed around its support of 52300 which is broken, then would see a correction upto 51500-51600 range. In case of such correction, one should look for buying opportunities near the mentioned support. On the higher side, the initial hurdle is seen around 53200 which if surpassed, then we should see a continuation of the momentum towards 54000-54200. 

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

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