Market Analysis And Stock Picks For Thursday, July 18th By SEBI Registered Research Analyst
Market Recap
On Tuesday, the Nifty settled marginally higher, gaining only 26 points after a day marked by noticeable volatility. Out of the Nifty 50, 28 stocks closed in the green, contributing to the overall bullish trend. The Nifty maintained its upward momentum, achieving a fresh all-time high.
Market Analysis and Outlook for Tomorrow
On the daily chart, Nifty formed a Doji candle again, indicating indecisiveness among traders. Despite this, bullish momentum was maintained during today's trading session, supported by open interest (OI) data that reflected trader confidence. Additionally, Nifty is maintaining higher highs and higher lows on the daily chart, reinforcing the bullish trend.
As long as the RSI remains above 70 without pulling back, caution is advised due to the overbought conditions. The overall sentiment for Nifty remains bullish; however, the observed indecisiveness suggests a potential for a healthy correction. This correction should be seen as a buy-on-dip opportunity, provided Nifty does not break below its support zone.
Key Levels for Nifty and Bank Nifty
Nifty:
Support: 24,430 and 24,360
Resistance: 24,665 and 24700
Bank Nifty:
Support: 52,150
Resistance: 52,660
Stock Picks for Tomorrow
Stock Pick : INFY
Buy: ABOVE 1735
Target: 1757, 1805
Stop Loss: 1700
Duration: 1 week
Rationale: Since July 12, Infosys has been trading between 1690 and 1725, maintaining its higher high and higher low pattern. This price action has formed a channel on the daily chart.
A surge in trading volume has been observed, supporting the probability of Infosys breaking the 1735 level and exiting the channel. Once this level is breached, a further upside rally is expected.
Note- Analysis and recommendations are provided by SEBI registered research analyst Ashish Singh.
Follow Ashish Singh SEBI RA here on telegrams – https://t.me/genitraders
Comments