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Nifty Prediction for Monday, 22 July 2024. Budget Ahead.
Profit Booking from the Record High level takes the Nifty 50 down by 1% on Friday as we are getting closer to the Union Budget 2024 and also the market is currently overvalued after the unbeatable rally in the past 1 month.
In the last trading session, Nifty fell more than 1% after opening with Gap Up and making a new all-time high of 24,854.80 ahead of the Union Budget 2024. This is likely predicted as the Nifty moved more than 3000 points in just 31 days post-general Election Results without any major correction.
This 31-day rally in the Nifty, where it made a new high 19 days takes the RSI in the Overbought zone which indicates a correction in the market, and also the MMI is continuously spiking in the Extreme Greed Zone which results in this Profit Booking ahead of the Budget,
And, this is obvious because investors do not want to stick their money in those sectors that might go out of the Budget allocation, so they are getting their funds ready to invest in those sectors where the government is going to invest or focus on.
Now, on the last day of the week, Nifty witnessed a correction of 269.95 points or 1.09% where the major losers were Commodities, Realty, Auto, PSE, Oil & Gas, and Energy Sector – closing the day a bit above the support level of 24,500.
Looking at the Nifty 50 Stocks,
Top Gainers: Infosys, ITC, Asian Paints, Britannia, LTI Mindtree
Top Losers: Tata Steel, BPCL, JSW Steel, Hindalco, ONGC
Also Read: Top 10 Mutual Fund Companies in India in 2024
Nifty50 Prediction for 22 July 2024
First, talking about the technical chart, Nifty seems bearish in the short term as it made a Bearish Marubozu-type candlestick on the daily time frame and following this, it is likely that Nifty may fall further in the Monday Session – taking support at the 24,400 level.
On the hourly chart, the Nifty is below its 50EMA which is a minor negative sign for the Nifty50. Also, it forms an Ascending Channel Pattern on the chart, and following this Nifty is likely to trade inside this pattern but on Friday it gives a false breakout on the upper side and later falls back into the pattern confirming the false breakout – indicating that the market is likely to fall further.
So, if Nifty sees some more profit booking on Monday, then the immediate support for Nifty is placed at the 24,500 level followed by 24,400, and 24,200 levels.
FIIs and Technical Indicators
First of all, FIIs were the net buyers in the cash segment on the 19th of July as they bought shares worth Rs. 1506 crores, and in the Futures, they sold Nifty Futures worth Rs. 1568Cr. The Graph of the Futures OI is also going down as FII Futures OI declined from 3.9L to 3.58L along with price – which means a Short Buildup in the Futures.
What to Expect from Nifty on 22 July 2024
Nifty is likely to open gap down on Monday, and it will further trade downwards towards the 24,400 and 24,300 level ahead of the Budget 2024. But there is strong support for Nifty at the 24,500 level and if Nifty sustains below this level then only we can go short on Monday.
The Market is waiting for the Budget that will be announced on the 23rd of July 2024 by Finance Minister Nirmala Sitaraman, and most likely we will see a correction ahead of the Budget – but in the past, there are 6 out of 10 Scenarios when the Market has given a positive return on the day prior to the budget.
Anyway, if the Nifty falls then 24,400 -24,200 can act as the support level for Nifty on Monday, but if the market shows a bull run then we may see Nifty around 25,000 on Monday 22 July 2024.
“Here are the trading levels for Nifty – 24,200 – 25,000“
Nifty Put and Call Open Interest Data
| Put OI (Open Interest) | Call OI (Open Interest) |
|---|---|
| 24,000 (59.06L) | 25,000 (69.44L) |
| 24,500 (52.67L) | 24,800 (42.83L) |
| 24,600 (31.16L) | 24,600 (37.81L) |
Nifty50 Support and Resistance for 22 July 2024
| Nifty Support Levels | Nifty Resistance Levels |
|---|---|
| 24,400 | 24,600 |
| 24,200 | 24.800 |
| 24,000 | 25,000 |
Note:- For the Most Accurate Data you can revisit this Page after 11:00 AM (during Trading hours), so we can update the Trade Setup after analyzing the Market.
Happy Trading 🙂
