Indian markets were volatile amid weak global cues but the Nifty managed to gain 0.9 per cent in June and hit a fresh high of 15,915 on June 28.
Nifty seems to be consolidating in a narrow range soon after setting new highs but investors believe that the technical setup of the market remains strong as Nifty is still trading above its key support. This means that the bulls have a chance to take the Nifty beyond 16000 in July.
The past market data shows that out of the last 10 years, 6 years have been such that the flag of the bulls has been rising in the market in July. In July 2020, the Nifty had gained more than 7 percent. At the same time, in 2017-18, the Nifty had seen a gain of more than 5 percent.
Nirali Shah of Samco Securities Says that the market was seen trading in most of the range in the month of June and it touched a low of 15,450 amidst volatility. Despite this, the bulls managed to take the reins of the market and set the overall trend. We expect the market to remain bullish in July as well.
He further said that the level of 15500 is very important for Nifty, as long as it remains above the level, the bullish trend will continue in the market. On the other hand, in the month of July, Nifty will have to face the resistance of 16100. Traders are advised to take long positions in Nifty with a stop loss near the support level.
Dharmesh Shah of ICICI Direct It also says that due to the healthy consolidation of the last 3 weeks, Nifty has made a strong base in the range of 15600-15500. Now we will see Nifty gradually moving upwards and in the coming weeks we can easily see the level of 16000 in Nifty.
He further said that one should buy good quality stocks in case of any downfall in the market at this point of time. Dharmesh Shah is of the opinion that Infosys, Axis Bank, Tata Motors, Divis Labs and Titan are the better bets in largecap. On the other hand, investment is advised in Midcap, Mindtree, Trent, Deepak Nitrite, Philips Carbon, Caplin Point, CCL products, KSB, Dhampur Sugar, BlueDart, Pricol and Supreme Industries.
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