Market Outlook for 08 July 2024

Nifty Prediction for Tomorrow - 08th July

In the week gone by, Nifty continued its slow and gradual upmove led by the index heavyweights and a broader market participation. Nifty registered a new record of 24400 and ended the week around 24300 with weekly gains of over a percent.

Our markets have seen a relentless upmove post the election results outcome which came a month ago. The upmove has been led by index heavyweights and also the broader markets have done well in this upmove. This indicates a strong buying interest amongst market participants.

If we look at the derivatives data, FIIs have led the markets higher in last few days and their ‘Long Short Ratio’ in the derivatives segment is above 80 percent. On the other hand, Client section has been against the trend with the ratio pegged below 35 percent. As the market continues to trend higher, these positions could be covered going ahead and if any such covering comes, it would add fuel to the rally.

The immediate supports for Nifty are placed around 24170 and 23950 and till the supports are intact, it is better to trade with a positive bias and look for buying opportunities in the market. On the higher side, the retracements of previous corrections indicates possible target of 24600 followed by 25000.

                     FIIs buying leading the markets higher; key supports intact

Bank Nifty Prediction for Tomorrow - 08th July

Bank Nifty rallied higher and marked a new record high of 53300 during last week, but it corrected in the last trading session due to HDFC Bank and ended the week around 52600.

Although the index corrected in Friday's session, it has not yet breached its short term 20 DEMA support which is placed at 51600. The RSI on the daily chart has shown signs of some pullback move which could either be some time-wise correction or a pullback upto 20 DEMA. However, except HDFC Bank, we have not seen weakness in other names and hence its is not a broad based correction. Traders are advised to look for stock specific opportunities from the banking space. 

Nifty, Bank Nifty Levels and  FINNIFTY Levels:

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