Benchmark equity indices ended higher for the third consecutive day on Friday, with the Nifty 50 extending its weekly gains as supportive global cues, easing crude oil prices, optimism over a softer global interest rate environment and positive outcomes from the India-Japan Summit lifted investor sentiment. Technical analysts, however, expect the key index to witness some consolidation before resuming its upward trajectory on Monday, July 6.
Nifty at close on Friday, July 3
Nifty top gainers and losers on Friday, July 3
Technical analysts point to a mixed but structurally resilient setup for Monday’s trading session. While intra-day profit-booking created a brief pause, the larger weekly horizon points to an extension of the broader bull run.
Riyank Arora, Associate Vice President – HNI & Derivatives at Hedged.in, said the broader trend continues to favour the bulls, with the Nifty holding comfortably above key support levels.
Arora said, “Indian equity markets ended higher for the session, extending their positive momentum as sustained buying in heavyweight stocks kept investor sentiment upbeat. The broader trend continues to favour the bulls, with markets holding firmly above key support levels.”
Nifty 50 closed at 24,273.90, up 98.20 points (+0.41%). The index remains technically strong, with immediate support placed around 24,200–24,150, followed by 24,050. On the upside, resistance is seen near 24,350–24,400. A sustained move above this zone could open the door for further gains, Arora said.
“The market continues to display resilience, supported by consistent buying interest. As long as benchmark indices hold above its key support levels, the overall trend is expected to remain positive. Traders may continue to adopt a buy-on-dips approach while maintaining disciplined risk management,” he added.
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the Nifty managed to break above the crucial 24,200 resistance during Friday’s session but failed to hold on to the higher levels, indicating some weakness in the breakout.
“Nifty witnessed breakout of crucial hurdle of 24200 levels on Friday, but was not able to sustain the highs and closed the day higher by 95 points amidst choppy movement,” he said.
Shetti further said a reasonable red candle was formed on the daily chart on Friday that formed above the resistance of 24200. “Technically this market action signal lack of strength in the upside breakout of crucial resistance,” he said.
“Formation of long bull candle on the weekly chart this week and a formation of long lower shadows in the last three weekly candles indicates that the consolidation movement in the market is likely to end soon and Nifty could re-gain momentum on the upside. The next upside to be watched around 24600 by next week and immediate support is placed at 24050,” Shetti concluded.
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Nifty daily chart – Friday, July 3
Nifty technical outlook for Monday
Commenting on Nifty technical outlook, experts, as quoted by IANS, said that the 24,400 level remains the immediate resistance.
“A sustained breakout above this zone could reinforce bullish momentum and pave the way for an advance towards the 24,500–24,600 region,” an analyst said.
“On the downside, the 24,200 level is expected to provide immediate support, followed by the 24,000 psychological mark, which remains a crucial support zone,” the market expert noted.
Broader markets, sectoral indices on Friday, July 3
The broader market showed a divergent trend on Friday. The Nifty MidCap index slipped 0.19 per cent, while the Nifty SmallCap index edged up 0.04 per cent.
Among the sectoral indices, Nifty Realty emerged as the top gainer, rising 2.19 per cent, followed by Nifty IT, which advanced 1.76 per cent, and Nifty Pharma, up 1.72 per cent. Nifty Metal also ended in positive territory with a gain of 0.76 per cent, while Nifty Financial Services and Nifty FMCG edged up 0.18 per cent and 0.02 per cent, respectively.
Nifty Private Bank closed flat. On the losing side, Nifty PSU Bank declined the most, falling 1.54 per cent, followed by Nifty Media, which slipped 0.45 per cent, and Nifty Auto, down 0.44 per cent.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
