Trade Setup For July 18: Nifty's Support Level Now Shifts Higher To 24,500

The Nifty continued its upward momentum and traded in positive territory throughout the day. It closed at a fresh closing high for the third day in a row on Tuesday. According to analysts, the support level for Nifty has also shifted higher to 24,500 and if the index falls below these levels, then a correction can be expected.

"Back-to-back DOJI candles at record levels indicate rejection at the higher levels; however, with each day passed, the support level shifted higher and now the immediate support is placed at 24,500," said Aditya Gaggar, Director of Progressive Shares.

However, it's not entirely clear if the trend will continue at higher levels. Nifty has surpassed the golden retracement level of 24,610, and the next key level to watch for is around 24,700–24,750, according to Osho Krishan, senior analyst, technical and derivatives, Angel One Ltd.

If the index falls below the 24,500 mark, then there could be a quick intraday correction.

On the other hand, Bank Nifty is consolidating in a narrow band but holding above the 21-Day Exponential Moving Average support, according to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd. The DEMA is positioned near 51,960, while the recent swing low is situated near 51,750, he added.

Yedve also added that a buy-on-dip strategy should be adopted for the banking index.

GIFT Nifty was trading 2.5 points, or 0.01%, higher at 24,667 as of 06:53 a.m.

The Nifty July futures are up 0.08% to 24,644 at a premium of 31 points, with open interest up 0.55%.

Nifty Bank July futures are down by 0.19% to 52,529 at a premium of 133 points, while its open interest is down by 4.28%.

The open interest distribution for the Nifty 50 July 18 expiry series indicated most activity at 25,000 call strikes, with 24,000 put strikes having maximum open interest.

For the Bank Nifty options July 24 expiry, the maximum call open interest was at 52,500 and the maximum put open interest was at 52,500.

Overseas investors remained net buyers of Indian equities for the third consecutive session on Tuesday. Foreign portfolio investors mopped up stocks worth Rs 1,272 crore, according to provisional data from the National Stock Exchange.

Domestic institutional investors stayed net sellers for the third session and sold equities worth Rs 530 crore, the NSE data showed.

India's benchmark stock indices ended at a fresh closing high for a third day in a row on Tuesday, tracking sharp gains in ICICI Bank Ltd., Infosys Ltd., and Bharti Airtel Ltd.

The NSE Nifty 50 settled 26.30 points, or 0.11% higher at 24.613.00, and the S&P BSE Sensex gained 75.71 points, or 0.06%, to close at 80,716.55. In the first half of the trade, the Nifty hit a fresh high of 24,661.25, and the Sensex touched a fresh high of 80,898.30.

On the BSE, broader markets ended on a mixed note. The S&P BSE midcap ended 0.29% lower, and the smallcap settled 0.32% higher.

Twelve out of 20 sectors ended higher and eight ended lower. S&P BSE Realty rose the most, and S&P BSE Capital Goods was the worst performer.

Market breadth was skewed in favour of buyers. Around 2,020 stocks gained, 1,892 stocks declined, and 97 remained unchanged on the BSE.

• Adani Enterprises: The company has entered into a joint venture with Sirius International and acquired a 77.5% stake in Coredge.io's parent, Parserlabs India.

• Exide: The company made an investment of Rs 75 crore in the arm of Exide Energy Solutions via a rights issue.

• KEC International: The company received new orders worth Rs 1,100 crore for transmission and distribution projects in India and overseas.

• Spicejet: Ashish Kumar resigned as CFO and Head of Finance; Joyakesh Podder takes charge as Head of Finance and is designated as deputy CFO effective July 15.

• Triveni Engineering: The company started commercial operations of its Indian-made foreign liquor business and launched two whisky products, Matsya and The Crafters Stamp.

• Bajaj Finance: IRDAI imposed a penalty of Rs 1 crore on the company for violation of rules on reconciliation of commission and professional fees received and reported and a Rs 1 crore penalty for violation of regulations on maintenance of records of customer documentation.

• IREDA: The company received approval for a Rs 290 crore equity investment for up to a 10% stake in SPVs for setting up a 900 MW hydroelectric project in Nepal in association with SJVN.

• Tata Power: The company plans to invest Rs 20,000 crore in capex in FY25. This is over and above the Rs 12,000 crore investment in FY24. A large part of this will be towards accelerating the company’s renewable energy portfolio and balance towards transmission and distribution businesses, N. Chandrasekaran, Chairman, said in the AGM.

• Hindustan Oil Exploration: The company made a major gas discovery in an unexplored layer called Sand-9 in the Dirok-1 well. Initial tests show a flow rate exceeding 6 million standard cubic feet per day. If further tests are successful, this discovery could increase the company's proven reserves and boost revenue.

• One 97 communication: The company partnered with FlixBus to expand intercity bus services through its distribution network. The company is to integrate FlixBus inventory on its platform.

• Indian Oil: The company raised Rs 2,500 crore via NCDs. The funds are to be used for refinancing existing debt and capex.

• Glenmark Life: Glenmark Pharma and Glenn Saldanha sold 96.17 lakh shares or 7.85% stake, in the company. Promoters' stake in the company was reduced to 75% from 82.85%.

• Aditya Birla Money: The company named Ashok Suvarna as CEO effective September 1.

• GMR Airports: The company reported total passenger traffic up 8% year-on-year at 1.06 crore in the month of June, and total aircraft movements up 6% year-on-year at 69,055 in the month of June.

• Techno Electric & Engineering: The company opened QIP at a floor price of Rs 1,506.58 per share.

• ONGC: The company commenced production from a coal bed methane block in Bokaro, Jharkhand. Initial production at 1.7 lakh SCMD is expected to be ramped up to 3 lakh SCMD by the end of FY25.

• Chennai Petroleum Corporation: The Petroleum Ministry appointed MD Arvind Kumar as IOCL's Director of Refineries.

Asian stocks fell in early trade after tighter US restrictions on chip sales to China spurred the worst selloff since 2020 in semiconductor stocks.

Scrips in Japan fell the most while those of South Korea and Australia were also trading lower. The Nikkei 225 was 910 points or 2.19% lower at 40,916 while the S&P ASX 200 was 7.5 points or 0.09% down at 8,052 as of 06:38 a.m.

Earlier, the US government informed that it is considering severe trade restrictions if tech companies continue giving China access to advanced semiconductor technology.

A rout in the tech stocks that have been powering the market rally in the US registered one of the biggest falls in recent years. Big names such as Nvidia Corp., Advanced Micro Devices, Inc. and Broadcom Inc. fell the most while dragging the semiconductor gauge down almost 7%, according to Bloomberg data.

The S&P 500 Index and Nasdaq Composite plunged 1.39% and 2.77%, respectively as of Wednesday. Dow Jones Industrial Average advanced 0.59%.

Brent crude was trading 0.24% higher at $85.28 a barrel. Gold was 0.06% up at $2,460.38 an ounce.

• US Dollar Index at 103.65

• US 10-year bond yield at 4.17%

• Brent crude up 0.24% at $85.28 per barrel

• Bitcoin was down 0.18% at $64,405.4500

• Gold spot was up 0.06% at $2,460.38

The Indian rupee closed flat on Tuesday after a fall in Brent crude prices offset the rise in the US dollar index. The local currency closed at Rs 83.59 against the greenback, according to Bloomberg. It had closed at Rs 83.60 on Monday.

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