Technical Morning Ideas 22 July by Vaishali Parekh Vice President - Technical Research, PL Capital Group - Prabhudas Lilladher
NIFTY / SENSEX
Nifty index has indicated a decent pullback from the significant support zone of the 24900 level, which was where the important 50EMA zone and the base of the channel pattern were positioned, indicating a trend reversal. Expect further upward movement in the coming sessions. The index would have the near-term resistance at the 25250 zone, which needs to be breached decisively to further improve the bias, and thereafter, to retest the 25650 level to strengthen the trend once again. Sensex witnessed a fall in the morning session to hit the low near the 82274 zone, thereafter to regain strongly to end the session near the 82200 level with overall bias maintained positive. The index needs to breach above the 20 DMA level of 83000 to continue with the upward journey, while on the downside, the 50 EMA level at 81850 is positioned as the important support level, which needs to be sustained to keep the overall bias intact. The support for the day is seen at 24900 levels, while the resistance is seen at 25300 levels.
BANKNIFTY / BANKEX
Bank Nifty recovered strongly from the base of the 56200 zone with a positive bullish candle formation on the daily chart on the back of good result outcomes from HDFC Bank and ICICI Bank, which helped in pulling the index, and we expect a further rise in the index with bias improving. The index, on the upside, would need to breach above the resistance zone of the 57600 level, and thereafter, expect for fresh higher targets of 58500 and 60000 levels in the coming days, as mentioned earlier. Bankex witnessed a strong bounce from the 50 EMA level of 62980 on the back of positive result outcomes from HDFC Bank & ICICI Bank pulling the index to close on a positive note above the 63500 zone with sentiment slightly eased out. For the index, the 20 DMA level of 63760 zone would be the important hurdle that needs to be crossed, and thereafter establish conviction to carry on with the positive move further ahead. BankNifty would have the daily range of 56500- 57600 levels.
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