Nifty Prediction for Monday, 20 July: The Nifty 50 is expected to open the new trading week on a firm note on Monday, July 20, after ending Friday’s session with gains of over 1 per cent, with technical analysts expecting the benchmark index to test the 24,450-24,550 resistance zone.
Analysts said a sustained breakout above key levels could pave the way for a rally towards 24,600-24,700, although the ongoing June-quarter earnings season is likely to keep stock-specific action in focus.
Nifty at close on Friday, July 17
For the week, the Nifty advanced 127.4 points, or 0.5 per cent, while the Sensex gained 582.06 points, or 0.8 per cent, reversing the losses seen in the previous week.
Nifty top gainers and losers on Friday, July 17
Nifty prediction for Monday, July 20 by experts
Nifty prediction for Monday, July 20 by Om Mehra
Om Mehra, Technical Research Analyst at SAMCO Securities, said the Nifty has delivered a decisive technical breakout after several sessions of consolidation, signalling improving momentum.
“Nifty ended the session at 24,334.30, up 1.09%, breaking sharply higher after a phase of tight consolidation within a narrowing triangle formation that had been developing since July 8. The index surged past the middle Donchian Channel band, placed at 24,160, and closed the week with a gain of 0.53%,” Mehra stated.
He noted that the Nifty continues to trade above all its key moving averages except the 200-day SMA. The RSI has moved back near the 60 mark, reflecting a pickup in momentum following the breakout.
“The immediate resistance is placed at 24,520, and a decisive close above this level could open the door toward 24,640. On the downside, 24,150 now acts as a strong support level, followed by 24,020 as the next support for the short term,” Mehra concluded.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, believes Friday’s rally has strengthened the short-term outlook after the index broke out of its recent trading range.
Shetti stated, “Nifty witnessed an excellent breakout of few sessions range at 24200 and closed higher. A long bull candle was formed on the daily chart on Friday that indicates that the market is now on the verge of surpassing above the crucial hurdles like previous opening down gap and 200day EMA around 24350-24400 levels. This is positive indication.”
“The underlying short-term trend of Nifty seems to have turned up. A sustainable move above 24400 levels could open the next upside target of around 24600-24700 levels in the short term. Immediate support is placed at 24200,” he added.
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Nifty daily chart – Friday, July 17
Riyank Arora, Associate Vice President – HNI & Derivatives at Hedged.in, also expects the broader market structure to remain constructive as long as key support levels hold.
“Indian equity markets witnessed a strong rally in today’s session, with benchmark indices closing over 1% higher as broad-based buying across sectors lifted investor sentiment. The sharp recovery has reinforced the positive market structure, with indices comfortably trading above key support levels,” he stated.
Arora further stated, “Nifty 50 closed at 24,334.30, up 261.55 points (+1.09%). The index reclaimed the 24,300 mark, with immediate support placed around 24,200–24,150, followed by 24,000. On the upside, resistance is seen near 24,450–24,550. A sustained move above this zone could pave the way for further upside in the coming sessions.”
Overall, Arora stated Friday’s strong rally reflects renewed buying interest and improving market sentiment. As long as benchmark indices continue to hold above their immediate support levels, the broader outlook remains bullish.
Traders may continue to adopt a buy-on-dips strategy while maintaining disciplined risk management, he concluded.
Sectoral indices on Friday, July 17
Among sectoral indices on the NSE, all sectors except pharma, metal and consumer durables ended in the green. Nifty IT gained 1.75 per cent, Nifty Auto advanced 1.24 per cent, while Nifty PSU Bank and Nifty Private Bank also posted strong gains, with the private banking index rising by more than 2 per cent at the close.
(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.)
