Market Cues – July 23
Global & Domestic Developments
Trade Sentiment Improves: Progress in global trade deals signals a more constructive outlook.
US-Japan Agreement: Both nations sign a bilateral agreement; tariff rates finalized at 15%, indicating easing tensions.
Japan's Nikkei Soars: The Nikkei surged 3%, marking a fresh record high as investor confidence strengthens.
Gift Nifty Trends Positive: Up +75 points, indicating a mildly positive start for Indian equities, though broader indices remain range-bound.
Wall Street Overnight Performance
Dow Jones: +0.40%
S&P 500: +0.06%
Nasdaq: -0.40%
Mixed sentiment prevailed, with tech under pressure while blue chips continued their upward momentum.
Indian Market Snapshot
Nifty 50: -0.12%
Bank Nifty: -0.35%
Nifty Midcap: -0.61%
Markets remain in consolidation mode, with profit-booking evident in midcaps and financials.
Cash Market Flows
Foreign Institutional Investors (FIIs): Net Sellers at ₹-3,549 Cr
Domestic Institutional Investors (DIIs): Net Buyers at ₹+5,240 Cr
Robust DII inflows provided a cushion against persistent FII outflows.
F&O Positioning
FIIs sold ₹798 Cr in index futures.
Added approximately 3,000 new short positions while covering 1,300 long positions.
Current FII positioning: 14% long vs 86% short, indicating a predominantly bearish outlook.
Options Activity: Notable increase in call writing;
congestion zone seen at 25,250–25,300, suggesting this as a near-term resistance area.
Key Technical Levels
Nifty 50
Recent Low (July 21): 24,882
20-Day Moving Average: 25,325
Watch for sustained closes above the 20-DMA to regain bullish momentum.
Bank Nifty
20-DMA at 56,988 – A critical level; reclaiming and sustaining above could shift momentum positively.
Nifty IT
Key Resistance at the 100-DMA level of 37,069 – Breakout above this could lead to renewed sectoral strength.