India’s Nifty 50 Index returned to winning ways on Tuesday as it rose by 0.4 percent to 24,950 points. The Index is on a strong uptrend, having gained 3.9 percent in July and 1.2 percent last week. Indian stocks have been under pressure in recent days on profit taking following a prolonged uptrend.
However, the decline in global oil prices has seen energy stocks boost the markets. Some of the notable gainers this week include NTPC, Bharat Petroleum and Indian Oil Company. Also, the Federal Reserve is expected to provide cues on likely interest cuts after the FOMC meeting on Wednesday, and that will be a key undercurrent that will likely keep the markets on the ascending trajectory.
The Nifty 50 Index is likely to continue with the upside as suggested by momentum indicators on the 4-hour chart below. The price is above the middle band on the Bollinger Bands indicator. Note how attempts to break above the upper band have been rejected multiple times, and the latest attempt aligns with the 25,000 points psychological barrier. Therefore, a successful break above that mark could build a strong upward rally.
Also, the Moving Average Convergence Divergence (MACD) is above the indicator line, adding support to the upside narrative.
The Nifty 50 Index will likely stay bullish above the 24,838 mark. That could strengthen the upside momentum to encounter the first resistance at 24,932. However, extended control by the buyers at that point could break the resistance and potentially build the momentum to test 25,000. Conversely, a move below 24,838 will favour the sellers to take control. In that case, the first support will likely come at 24,748. Further control at that point could break the support and could also strengthen the downside momentum to take the index lower to test 24,658.
This post was last modified on Jul 30, 2024, 11:03 BST 11:03