Market Analysis And Stock Picks For Tuesday, July 16th By SEBI Registered Research Analyst

Major Indices Performance

The market continued its positive momentum today, with both the Nifty and Sensex extending their gains. Intraday, the indices showed resilience and managed to close with gains of around 0.35%, sustaining the bullish trend from the previous sessions.

Nifty Overview

The Nifty index displayed steady performance throughout the day, closing at 24,586, up by approximately 0.35%. Despite minor fluctuations, the index maintained its upward trajectory. The RSI remains in the overbought zone at 74, suggesting that while the bullish sentiment prevails, investors should watch for any signs of a pullback.

Market analysis and Outlook for Tomorrow

On the daily chart, Nifty formed a Doji candle, indicating indecisiveness among traders. Despite this, the bullish momentum was maintained during today's trading session, supported by open interest (OI) data that reflected trader confidence.

As long as the RSI remains above 70 without pulling back, caution is advised due to the overbought conditions. The overall sentiment for Nifty remains bullish; however, the observed indecisiveness suggests a potential healthy correction. This correction should be seen as a buy-on-dip opportunity, provided Nifty does not break below its support zone.

Key Levels for Nifty and Bank Nifty

Nifty:

• Support: 24,400 and 24,340

• Resistance: 25,610 and 24,770

Bank Nifty:

• Support: 52046

• Resistance: 52,846

Stock Picks for Tomorrow

1. Stock Pick : ONGC

• Buy:  318-325

• Target: 345

• Stop Loss: 300

• Duration: 1 week
  

1. Rationale: ONGC closed at 322 today, accompanied by substantial trading volume and a robust delivery percentage. The stock has maintained a pattern of higher highs and higher lows, indicating a strong bullish trend. Towards the end of the trading session, a MACD crossover was observed, further supporting the bullish outlook. Currently trading above its 50-day moving average, ONGC remains in a strong bullish zone. As long as the stock does not break below its previous higher low of 300, it is advisable to stay in the trade to capitalize on potential gains. This technical strength, combined with positive volume and delivery metrics, suggests continued upward momentum.
   

Note- Analysis and recommendations are provided by SEBI registered research analyst Ashish Singh.

Follow Ashish Singh SEBI RA here on telegrams – https://t.me/genitraders

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