TECHNICAL VIEW | NIFTY FAILS TO HOLD RECORD HIGH, ENDS FLAT; EXPECT CONSOLIDATION GOING AHEAD

The Nifty50 index continued its record rally on July 4 as the index crossed 24,400 for the first time but failed to hold on to the gains, closing near day's low.

The index opened higher at 24,369.95 and touched fresh all-time high of 24,401 in the initial hours and stayed positive throughout the session but last hour selling erased most of the intraday gains to close on flat line.

At close, the Nifty was up 15.70 points or 0.06 percent at 24,302.20.

Among sectors, Information Technologies and Pharma indices rose 1 percent each, while Auto and Realty were up 0.5 percent each. However, the Media index shed 0.4 percent.

Nifty Midcap 100 index also hit fresh highs of 56,711.25 during the day but ended 0.6 percent higher at 56,618.60.

"Nifty opened gap up and thereafter consolidated during the day to close with gains of 16 points. On the daily charts we can observe that the Nifty has been steadily inching higher. It has now reached the zone of 24,370 – 24,500, which coincides with the 150% fibonacci retracement level of the previous fall and can act as a resistance from short term perspective," said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas

"Moreover, the negative divergence and bearish crossover on the hourly momentum indicator suggests loss of momentum on the upside. Thus, we can expect some consolidation going ahead. Aggressive longs should be avoided and a trailing stoploss of 24200 should be maintained for the long positions," he added.

The Nifty Bank index opened 260 points higher and went tested fresh record high of 53,357.70, however, selling at higher levels erased all the losses to end flat at 53,103.70.

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2024-07-04T11:00:49Z dg43tfdfdgfd