Bank Nifty Outlook for Wednesday, 29th July | 50x Investments
Bank Nifty - Technical Analysis:
- Bank Nifty started off the day with a gap-up opening but soon corrected over 1.7% within an hour. The bears then started booking their profits due to which Bank Nifty retraced upward before settling near the day's high.
- On the hourly chart, Bank Nifty gave a failed breakout above the EMA20 line and formed a red candle after it. This implies that there is some bearish strength remaining before the market corrects upwards.
Market - Driving Factors:
- Ultratech Cement closed in the green by over 7% on the back of better than expected Q1FY21 results. These results also rubbed off on other realty firms with Prestige Estates ending over 12% up.
- Nestle India reported a 11% increase in net profit on a YoY basis which was less than the street estimates due to which the stock ended in the red by over 1.4%.
- Hopes of a fresh stimulus to be issued by the US Government kept the bulls optimistic and the Indian indices in the green.
Bank Nifty - Outlook for Wednesday, 29th July:
- Bank Nifty might continue its upward retracement due to further profit booking by the bears given the hopes of a second stimulus by the US Government.
- 22216 (38.2% retracement level) will act as a strong resistance level for Bank Nifty tomorrow.
- Airtel, Parle, Maruti and TVS Motors are scheduled to announce their results tomorrow. These results might affect the market sentiment in general and thus have a bearing on Bank Nifty as well.