The Nifty will commence the July F&O series today after ending the June series strongly on Thursday. The index in the June month posted its fourth straight series of gains, with Nifty moving higher by more than 700 points to settle at 25,549.

So as we enter the new series, Zee Business Managing Editor Anil Singhvi lists some of the positive triggers:

Positive triggers for July series 

• Foreign institutional investors (FII) may make a comeback on D-Street as sentiment improves. In the previous session, FIIs bought aggressively.
• No fear of a big sell-off
• Domestic funds or DIIs continue to support the market. In the previous month, DIIs net bought equities worth Rs 69,765 crore.
• Furthermore, on the domestic front cues relating to interest rate, inflation as well as liquidity are positive.
• The expert also expects good news on tariff war by the July 9 deadline. There are expectations that India-US may sign a deal soon.
• Israel-Iran and the US geopolitical tensions seem behind.
• Dollar index has been plummeting as well as crude price has softened to around $67 per barrel.

Outlook for July series

The market wizard Singhvi held that bullish sentiment will sustain until the first half of the series i.e. by atleast July 9. Post this as things clear around tariff war, an upmove may be triggered if tariff war settles peacefully.

For the Nifty, the next range is 25,800-26,000, while for the Bank Nifty it is near 58,000 levels.

He added that only if Nifty and Bank Nifty end below 24,500 and 55,250 levels, respectively, then only we may see profit booking.

Will July be the 5th consecutive bullish series?

Historically, July series has depicted a positive trend. Out of the last 5 series, 3 were positive, while out of the 10 series, 6 showcased a bullish trend. The expert noted that the series kicked-off with a higher open interest in Nifty. Nifty’s rollover is stable, while Bank Nifty’s is relatively lower. 

FIIs’ net index futures long position increased from 20 per cent to 38 per cent. implying that FIIs have a better outlook on the market now. 

In the previous series, Nifty rose 715 points, while Bank Nifty climbed 1660 points. Over the past 4 series, Nifty has gained a sharp over 3000 points, while Nifty Bank climbed 8,461 points. On the last day of the June series, Bank Nifty rallied and marked a new all-time high.