📷 Image Credits: CNBCTV18
Amidst the volatile market conditions, the Nifty index in India is anticipated to see new highs potentially driven by a revived IT sector. The index recently retraced from its peak of 24,592 but closed above the crucial level of 24,500, ending the week with a 0.7% gain.
As per recent analysis and market trends, there is a sentiment of optimism surrounding the IT pack, which could propel the Nifty index to achieve newer milestones. Traders and investors are keeping a close watch on the market dynamics to leverage potential opportunities.
The trade setup for Friday, 15th July 2022, witnessed heavy selling pressure in banking and IT stocks, causing the Indian stock market to end in the red zone for the fourth consecutive session. The Nifty 50 index closed 28 points lower at 15,938, while the BSE Sensex shed 98 points, settling at 53,416 levels.
However, amidst the sell-off, buying interest in energy, pharmaceutical, and consumption stocks provided some relief on Dalal Street. The India VIX, reflecting market volatility, decreased to 18.34, indicating a marginal decline of 1%.
The global market cues, particularly from the US, have been under pressure due to surging inflation rates, reaching a 41-year high. Wall Street observed a mixed performance with the Dow Jones down by 0.46%, Nasdaq slightly up by 0.03%, S&P 500 dipping 0.30%, and Small Cap 2000 tumbling by 1.10%.
In Asian markets, early morning trends saw a tepid performance, with the Japanese Nikkei up by 0.12%, Hong Kong’s Hang Seng down by 0.22%, and the Chinese Shanghai index quoting lower by 0.41% from Thursday’s close.
The technical outlook for SGX Nifty indicated a range-bound movement, with immediate supports at 15,800 and 15,640 levels. Resistance levels are anticipated at 16,050 and 16,200 levels, as analyzed by market experts.
Overall, amid fluctuating market sentiments, the IT sector’s resurgence could potentially drive the Nifty index to reach new highs, providing opportunities for market participants to capitalize on the evolving market conditions.
