Market Outlook for 19 July 2024

Nifty Prediction for Tomorrow - 19th July

After the mid-week holiday, Nifty started the day marginally negative but the index rallied in the later part of the day as the index heavyweights witnessed positive momentum and the index ended at record high of 24800.. 

Nifty witnessed some intraday pullback on Thursday, but it did not break its first support of 24500 and infact rallied higher led by a continuation of the uptrend in the IT stocks. Although, the Midcap stocks witnessed some profit booking and hence the overall market breadth was negative.

The near term trend for Nifty continues to be positive with immediate support now placed at 24500. A break below this will only lead to a change in near term momentum and till then, traders should trade in the direction of the primary trend. Thus traders with long positions can trail the stoploss to 24500 level. However, the RSI continues to be in the overbought zone and hence, one should be very selective in stock picking.

The RSI readings on the Midcap index have given a negative crossover and hence, we could see a relative underperformance in the midcaps and small caps.

The supports for Nifty are placed around 24500 and 24370 and as the index is at all-time high, it is better to ride the trend with a trailing stop loss method. 

                   IT stocks lead Nifty to new record of 24800

Bank Nifty Prediction for Tomorrow - 19th July

In last few trading sessions, the Bank Nifty index has consolidated within a range but has managed to defend its 20 DEMA support. This support placed around 52000 is a crucial support for the short term.

On the higher side, a move above 52800 could lead to some near term positivity in the banking space. Hence, traders should look to trade with a stock specific approach within the banking space and keep 52800 as a reference point for stop losses on long positions.

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

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