The GIFT Nifty traded higher during Thursday’s early trading session, up by 0.14% at 19,527, indicating a mildly positive opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex ended in the red after tanking in trade on Wednesday, as global markets fell on Fitch Ratings’ downgrade of US credit ratings. The Nifty 50 gave up 207 points to close at 19,526.55. On the other hand, Sensex slipped 1.02% to end at 65,782.78.
The Dow Jones Industrial Average declined 0.98% on Wednesday, while the S&P 500 tanked 1.38% and the tech-heavy Nasdaq Index crashed 2.17%. Shares in the Asia-Pacific region were trading in the red on Thursday, extending the global rout. China’s Shanghai Composite and Shenzhen Component were down by 0.22% and 0.33% respectively. Japan’s Nikkei 225 tanked 1.32%. South Korea’s Kospi advanced 0.15% while Hong Kong’s Hang Seng fell 0.58%. The Taiwan Weighted index recorded a loss of 1.85%.
Nifty to take cues from global markets
“Nifty has closed below the crucial support of the short term moving average i.e. 20 EMA after five months but respected the trend line around the 19,420 zone. We feel it is prudent to reduce aggressive longs and wait for clarity. Traders should keep a close watch on the US markets for cues,” said Ajit Mishra, SVP – Technical Research, Religare Broking.
Nifty 50 crucial support seen at 19,400
“On the technical front, the benchmark index opened on a jittery note as global markets reeled under the impact of the Fitch rating downgrade of the US. The index found modest buying interest at the back of 30 DEMA and saw a mild pullback to close slightly above the pivotal support near 19,512. It will be crucial that the index continues to sustain above the above zone of 19,400-19,500 on a closing basis going forward,” said Riches Vanara, Technical And Derivatives Analyst, stoxbox.
Nifty 50 support at 19,100
“The short term trend of Nifty has turned down and one may expect more weakness in the coming days. The next crucial lower supports to be watched around 19,200-19,100 levels in the coming week. Any pull back rally up to 19,600-19,650 could be a sell on rise opportunity,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Bank Nifty Outlook
Bank Nifty to consolidate
“On the weekly chart as well we can observe that the Bank Nifty traded within the range 44,700 – 46,370 of the penultimate week and thus formed an Inside Bar pattern which makes the extremes of the range crucial levels to watch out for in the short term. A breach of this range on either side shall lead to a move in that direction. Overall, we expect the Bank Nifty to consolidate between 46,500 – 45,000,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty 20-DMA acts as crucial support
“On the other hand, Bank Nifty has support around 44,400 zones while resistance is placed at 45,300-45,400 range. Yet this volatility can provide traders with enough opportunities for short term gain on both buy and sell sides,” said Om Mehra, Equity Research Analyst, Choice Broking.