Weak global cues pushed the benchmark index in red in the last hour of the session on July 26. Sensex closed 123 points lower at 52,852, while nifty fell 31 points at 15,824.
China and Hong Kong shared to their lowest this year, as investors are concerned about billing government regulations in the education, property and technology sectors, said a Reuters report.
“The Indian market swings among the advantages and disadvantages in current volatile trade, which reflects global colleagues who are weak because investors are waiting for a lot of quarterly income. Chinese education, property, and the breathful sector fell sharply after a more stringent government regulation,” Vinod Nair , Head of Research in Geojit Financial Services, said.
“Globally, the market is waiting for the future Fed meeting this week to have clarity about the time of tapering asset purchases.”
Sectorally, selling pressure is seen in energy, realty, strength, automatic, and telecommunications, when buying is seen on consumer durability, health care, metal, and that.
In front of the wider market, the BSE MIDCAP index closed flat, while the small index ended with a 0.3 percent increase.
India Vix rose 5.87 percent from 11.76 to 12.45 levels. The surge in volatility causes several profit orders but as a whole, lower volatility shows that buying interest can arise again in a meaningful decline, the experts said.
At the front of the option, the maximum number of OI was placed at 15,800 followed by 15,000 strikes, while the OI maximum call was placed at 16,000 followed by 15,900 strikes. The option data shows a broader trading range between 15,700 and 16,000 zones.
This is what investor experts must do on July 26:
Expert: Chandan Taparia, Vice President | Derivative analyst, Oswal Motilal’s financial services
Nifty moved in the range of 100 points throughout the day and respected the direct support zone but failed to cross high the previous day, indicating that follow-up was lost in a higher zone.
The index forms a bearish candle and the inner blades on a daily scale and continues to form higher lows than the last two sessions.
Now, Nifty must hold above 15,800 to watch the step up towards 15,962 and 16,000, while on the downside, support is at 15,750 and 15,700.
Shrikant Chouhan, Executive Vice President, Technical Research Equity, Securities Box
The benchmark index remains in the strict trading range and both important levels of 15,900 / 53,100 damaged or 15,750 / 52,650 levels are threatened, mainly due to the substantial pressure of the longest expired rollovers.
Participants also await the results of the US Fed meeting on July 27-28, which will also have many meanings for the local market.
The index formed a “inner body” formation, which was a sign of doubt and showed a trend step on July 27, the market must destroy the upper or bottom limit.
On the downside, support is placed at 15,750 for nifty, and 52,650 for Sensex. Close below 15,750 and52,650 can see Nifty and Sensex decreases to 15,650 and 15,2300, respectively.
Gaurav Ratnaparkhi, Head, Technical Research, Stock by BNP Paribas
Nifty is traded in a narrow range on July 26 and forms the blade inside on the daily chart. The recent structure shows that the index has received support near the EMA 40 Days intersection & Bollinger Bollinger Bollinger and takes a leap towards the top end of the consolidation.
For the last few sessions, 15,900 acted as a barrier to the index, maintaining a check increase. On the downside, 15,800-15,750 is a direct support zone for nifty.
Bollinger band per hour has contracted again, which shows that the index is likely to witness further consolidation. Overall, the ongoing short-term consolidation is to provide many buying opportunities to stagger for position traders.
