Indian stock markets witnessed a shift in sentiment on July 19, 2024, as bulls relinquished control to bears in anticipation of the upcoming Union Budget 2024 scheduled for next week. The Nifty 50, a key benchmark index, displayed bearish reversal patterns on both daily and weekly charts, raising concerns about a potential decline.

Nifty 50 Faces Crucial Levels:

Experts warn that a decisive close below 24,500 for the Nifty 50 could embolden bears and trigger further selling pressure. Conversely, a breach above the critical resistance zone of 24,800-24,900 could signal a reversal and short-covering by traders who had bet on a price decrease.

Bank Nifty Vulnerable Below 52,000:

Similar anxieties cloud the Bank Nifty, another vital index. Failure to maintain support at 52,000 could lead to significant selling pressure. Conversely, a surge above 52,800 might pave the way for an upward rally.

Market Performance on Friday:

The Nifty 50 closed at 24,531 on Friday, down 270 points or 1% from the previous day. However, it ended the week flat despite the intraday decline. The Bank Nifty mirrored this trend, shedding 355 points (0.7%) on Friday but closing flat for the week at 52,266.

Broader Market Movement:

The broader market also reflected the cautious mood. On the National Stock Exchange (NSE), 1,984 shares witnessed a decline, whereas only 353 shares advanced.

Looking Ahead:

The upcoming Union Budget is expected to be a major driver of market sentiment in the near future. Investors remain watchful, awaiting clarity on fiscal policies and their potential impact on various sectors.