Nifty 50 Weekly Market Outlook July Week 3, 2023Weekly Review:
The Nifty 50 closed at 19,564.5 gaining +1.2% from the previous week. The Index closed on a positive note supported by 150 points rally on Friday overpowering bears majorly supported by a +4.3% rally in the Nifty IT index. The index stayed within a tight range of 19,333-19,516 in the previous week. On Macro Economic front, India's CPI surged to 4.8% in June but stays within the RBI tolerance band of 2-6%, this surge is majorly impacted due to delay in the monsoon which has caused supply shock within markets pushing retail inflation to surge for a short-term period.
Weekly Forecasts:
On Daily charts, Nifty 50 stayed above the channel bandwidth point of 19,433 with upward momentum. The channel since April 2023 contains almost 97.6% of the price action till the present day and hence the channel bounds for obvious reasons now act as key Support and Resistance levels at 19,125 and 19,756 respectively.
Evident from the past week's surge, a sustained move above 19,433-19,500 is expected to push index to 19,673 and 19,756 . On lower levels, I feel 19,333 is the first support level where index can see a sideways movement and a breach below this level can push index to 19,224, 19,125(key support) and 18900 levels .
Earnings calendar is keeping the bulls in control. This is evident with a positive reaction in share prices, even with subdued earning of IT giants like Infosys, TCS, Tech Mahindra and Wipro that such growth and numbers are being well factored in the share prices.
*Disclaimer*: I am not SEBI registered analyst and hence the above market outlook is for only educational study and research purposes only. In no way do I endorse this opinion to take a trade or for any investments in markets in any form by any Participant. Be a responsible investor with proper risk management and keep learning as a true focus.
