Nifty Holds Steady at 24,200 – Market Analysts Weigh In

Indian equities are poised for further gains with the Nifty index holding steady at 24,200 levels. Market analysts suggest that the ongoing momentum is likely to continue, with sectors like IT, pharma, and automobiles showing strength. Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services Ltd., believes that the Nifty will consolidate within a broader range. On the other hand, Shrikant Chouhan, head of equity research at Kotak Securities, advises day traders to monitor breakout levels for potential rallies up to 24,500-24,525 levels. However, any dip below 24,200 could signal a shift in sentiment. Kush Bohra, founder of Kushbohra.com, refrains from initiating fresh short positions on the Nifty, while expressing concerns about negative divergence on the Bank Nifty.

Technical analysis suggests that the Bank Nifty is consolidating within the band of 52,000-53,200. Hrishikesh Yedve, AVP technical and derivatives research at Asit C Mehta Investment Intermediates Ltd., indicates that a sustained hold above 53,200 on an hourly basis could lead to a rally towards 54,000-54,200 levels. Additionally, the Nifty July futures are trading at a premium of 57.3 points, with open interest seeing a slight uptick.

In the global markets, Asian stocks are experiencing mixed trends, with investors awaiting key election results in the United Kingdom and upcoming US jobs data. European stocks, on the other hand, are on the rise amid crucial election outcomes and expectations of rate cuts by the US Federal Reserve. The US markets remained closed for Independence Day, with futures showing a mixed outlook. Brent crude is trading higher at $87.51 per barrel, while gold remains steady at $2,359.27 an ounce.

Amidst these developments, the Indian rupee strengthened against the US dollar on Thursday, benefitting from a decrease in the dollar index and crude oil prices. Compared to the previous trading session, the local currency closed 3 paise stronger at Rs 83.50 and opened flat at Rs 83.54 against the dollar.