Nifty Eyes 24,900–25,000 Support After Breaking 50-DMA
The Indian benchmark index, Nifty, closed below 25,000 and its 50-DMA for the first time in over two months, sparking concerns among investors. As the index faces a critical juncture, analysts are keeping a close eye on the support zone of 24,900-25,000. A breakdown of this zone may lead to further declines towards 24,750-24,500, while upside resistance lies at 25,200-25,325.
The Nifty had been trading in a relatively narrow range for the past few weeks, with the index struggling to break above the 25,500 level. However, the recent decline has taken the index below its 50-DMA, a critical level of support. A breakdown below this level can lead to a further decline in the index’s value.
The rally in the Nifty had been driven by the strong earnings of various companies, particularly in the IT and pharmaceutical sectors. However, the recent decline can be attributed to the global cues, including the rising Dollar Index, which has been capping rallies in the Indian equity market.
The earnings of Reliance, ICICI, and HDFC Bank will be crucial in guiding the market’s move on Monday. Analysts are expecting a mixed bag of earnings from these companies, which may lead to volatility in the market.
Key Levels to Watch
The Nifty has broken below its 50-DMA, which is currently at 25,040. The index has also closed below the 25,000 level, which is a critical psychological level. The next level of support lies at 24,900-25,000, which is a key support zone. A breakdown below this zone may lead to further declines towards 24,750-24,500.
On the upside, the index faces resistance at 25,200-25,325. A break above this level may lead to a rally towards 25,500-25,750.
Technical Indicators
The Nifty has broken below its 50-DMA, which is a bearish signal. The index has also closed below its 20-DMA, which is another bearish signal. The MACD (Moving Average Convergence Divergence) is also bearish, indicating a decline in the index’s value.
Earnings to Watch
The earnings of Reliance, ICICI, and HDFC Bank will be crucial in guiding the market’s move on Monday. Analysts are expecting a mixed bag of earnings from these companies, which may lead to volatility in the market.
Reliance is expected to report a strong set of earnings, driven by its strong operational performance and strategic initiatives. The company’s earnings will be driven by its retail business, which has been growing rapidly in recent quarters.
ICICI is expected to report a mixed set of earnings, driven by its strong retail business and weak corporate lending. The company’s earnings will be impacted by the decline in corporate lending, which has been a major source of revenue for the company.
HDFC Bank is expected to report a strong set of earnings, driven by its strong operational performance and strategic initiatives. The company’s earnings will be driven by its strong retail business, which has been growing rapidly in recent quarters.
Conclusion
The Nifty has broken below its 50-DMA and 25,000 level, sparking concerns among investors. The index faces a critical juncture, with the support zone of 24,900-25,000 being a key level to watch. A breakdown below this zone may lead to further declines towards 24,750-24,500, while upside resistance lies at 25,200-25,325.
The earnings of Reliance, ICICI, and HDFC Bank will be crucial in guiding the market’s move on Monday. A mixed bag of earnings may lead to volatility in the market, while global cues, including the rising Dollar Index, may cap rallies.
Source:
https://stocktwits.com/news-articles/markets/equity/nifty-levels-to-watch-july-22/ch8qvChR5A7
