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After The Bell: Bulls take control, here’s what investors should do on Friday

The Nifty continues to remain range-bound between 15,400 and 15,900. Both these levels are crucial and a break on either end can result in a 300-point move, say experts

July 29, 2021 / 05:05 PM IST

The bulls finally managed to take control of D-Street on the July series F&O expiry day after three straight sessions of losses on positive Asian cues.

The Sensex rose 209 points to 52,653, while the Nifty gained 69 points to close at 15,778.

"Global markets were on track to rebound after the panic sell-off surrounding the Fed policy and the Chinese tech crackdown cooled off. Despite the hawkish commentary from the Fed, it did not signal a rush to taper the stimulus measure,” Vinod Nair, Head of Research at Geojit Financial Services, said.

China’s attempt to calm investors’ nerves also helped the market to take a breather. Metal stocks sparkled anticipating high demand after huge infrastructure fiscal package was finalised in the US, he said.

Sectorally, buying was seen in metals, realty, public sector and IT stocks, while selling pressure was visible in FMCG, telecom, power, and oil & gas names.

Close

On the broader markets front, the BSE midcap index rose 0.39 percent, and the smallcap index gained 0.9 percent.

Here’s what experts suggest investors should do on July 30:

Expert: Sumeet Bagadia, Executive Director, Choice Broking

IndexPricesChangeChange%
Sensex59,005.27514.34 +0.88%
Nifty 5017,562.00165.10 +0.95%
Nifty Bank37,235.8590.15 +0.24%
Nifty 50 17,562.00 165.10 (0.95%)
Tue, Sep 21, 2021
Biggest GainerPricesChangeChange%
JSW Steel668.9535.75 +5.65%
Biggest LoserPricesChangeChange%
Maruti Suzuki6,777.00-173.40 -2.49%
Best SectorPricesChangeChange%
Nifty Metal5444.45135.45 +2.55%
Worst SectorPricesChangeChange%
Nifty Auto10156.00-46.70 -0.46%

On the technical front, the index has been trading at higher highs and lower lows formation and taken support at lower Bollinger Band formation and 50-day SMA, which suggests a bounce back in the upcoming session.

However, the Nifty is struggling in the 15,700-15,900 range and a breakout on either side will decide the direction. The Nifty is finding resistance at around 15,960, while on the downside, support is intact at 15,600.

Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities

On the monthly F&O expiry day, the market witnessed a smart pullback rally, though the July series has been volatile with a momentum of nearly 450 points.

While sectoral performance in the July series was mixed, with realty and metal indices gaining more than 13 percent. Technically, for the bulls, 20-day SMA or 15,820/52,700 would be the key resistance levels. On the flip side, 50-day SMA or 15,650/52,200 could be the strong support zones.

The chart texture suggests that trading below 20 days would increase further weakness, while on the other side, an uptrend wave could continue up to 15,900/53,200 if indices succeed to trade above 15,820/ 52,700 levels.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

The market didn’t make any progress on July 29. The Nifty continued to remain range-bound between 15,400 and 15,900.

The volumes are tepid and the movements lacklustre. Both these levels are crucial and a break on either end can result in a 300-point move.

Rohit Singre, Senior Technical Analyst, LKP Securities

The Nifty50 managed to close the day on a positive note at 15,778 with gains of half a percent and formed a Doji candle on the daily chart.

The index has formed a good base near the 15,750-15,650 and as long as it holds above the level, bullish momentum is expected to continue.

Any dip will be a buying opportunity and the Nifty may head towards the upper band of the range placed at the 15,950-16,000 mark. The immediate resistance is coming near 15,800-15,875.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

 
Kshitij Anand is the Editor Markets at Moneycontrol.
first published: Jul 29, 2021 05:05 pm

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