GIFT Nifty recorded a 0.20% loss during Monday’s early trading session, with a value of 19,727.5 indicating a negative opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex snapped their winning streak and closed in the red on Friday. Nifty 50 tanked 234.15 points to settle at 19,745, while Sensex gave up 1.31% to close at 66,684.26, almost 900 points lower.
The Dow Jones was flat, higher by 0.01%, the S&P 500 inched up 0.03%, and the Nasdaq Composite slipped 0.22% on Friday. Shares in the Asia-Pacific region were trading mixed on Monday. China’s Shanghai Composite and Shenzhen Component were in the red, with Shanghai down by 0.23% and Shenzhen slipping 0.27%. Japan’s Nikkei 225 jumped 1.25%. South Korea’s Kospi surged 0.36% while Hong Kong’s Hang Seng tanked 1.15%. The Taiwan Weighted index recorded a loss of 0.11%.
Nifty might see an upside bounce
“Nifty formed a bull candle with a long upper shadow on the weekly time frame chart, which signaled presence of stiff resistance at the 20K mark. The immediate support of 10 day EMA is at 19,650 levels and important 20 day EMA support is at 19,425 levels. That said, the 20 day EMA has been offering support for the market for the past three months. Hence, there is a possibility of an upside bounce in the market on further weakness from here. On the way up, the area of 19,850-19,900 levels could act as a stiff resistance,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Nifty 50 support seen at 19,550
“On intraday charts, the Nifty has breached the crucial support of 19,825 and post breakdown it is comfortably trading below the same, which is largely negative. In addition, a sharp intraday correction and reversal formation on daily charts is also indicating temporary weakness. Below 19,825, the weak sentiment is likely to continue below the same and could slip till 19,600-19,550,” said Amol Athawale, Vice President – Technical Research, Kotak Securities.
Bank Nifty Outlook
Bank Nifty uptrend intact
“Bank Nifty was volatile; it traded in a range and closed down ~110 points. The hourly momentum indicator has triggered a negative crossover which can lead to consolidation in the short term, however, the overall uptrend is still intact and we believe that this dip is a pullback in the overall up move and not a trend reversal. On the upside we expect the Bank Nifty to target levels of 46,500 in the short term,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty resistance at 45,500
“Bank Nifty experienced a volatile trading session with both buying and selling pressure seen from market participants on both ends. The lower end support for Bank Nifty is placed at 45,900. If the index falls towards this level and holds, it may act as a support, preventing further downside. On the other hand, the upside resistance is visible at the 46,350-46,400 levels,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
45,000 key level to watch
“For Bank Nifty, 45,800-45,500 would be the key levels to watch out for and above the same, the index could move up till 46,500-46,900. On the flip side, below 45,500 would be vulnerable,” said Amol Athawale, Vice President – Technical Research, Kotak Securities.