Stock Market Today, Nifty, Bank Nifty: Benchmark indices may remain under pressure amid mostly negative global cues. The Nifty futures on Singapore Exchanges (SGX) were trading 13 points or 0.07% lower at 18,818 in the early morning trade. Asian markets were trading broadly in red – Hong Kong’s Hang Seng tanked 1.48%, China’s Shanghai Composite Index tumbled 1.38%, South Korea’s KOSPI dipped 0.69%, Asia Dow sank 1.38% and Japan’s Nikkei 225 plunged 1.37%. The US market ended the overnight session mostly in green – Dow Jones Industrial Average (DJIA) settled flat, S&P 500 rose 0.37% and the tech-heavy Nasdaq gained 0.95%. On Thursday, NSE Nifty 50 fell 85 points settling at 18,771. Sensex closed at 63,238, down 0.45%. The broader markets closed largely in the red, as Nifty Smallcap 100 tanked 0.76% and Nifty Midcap 100 slipped 1.06%. Nifty Next 50 fell 1.18%. Sectorally, Nifty Media and Nifty Metal were the only indices that closed marginally higher, while the rest settled in the red. Bank Nifty ended at 43,724 while Nifty PSU Bank crashed by 1.67%.
NSE Nifty 50 Outlook
Nifty’s breakout above 18888 necessary to sustain upward trend
“Nifty’s breakout above 18888 is necessary to sustain the upward trend. Conversely, the low reached on Tuesday, around 18650, coincides with the 20EMA (Exponential Moving Average) and can be regarded as a significant support level. A breach below this level could trigger a breakdown of the Double Top pattern, potentially leading to further profit booking in the Nifty,” said Rajesh Bhosale, Technical Analyst at Angel One Ltd.
Nifty could retest level of 18700-18650
“On intraday charts, the Nifty has formed a double top formation and also formed a bearish candle on daily charts which is largely negative. For day traders, 18850 would be the immediate resistance level. Below this, the market could retest the level of 18700-18650. On the flip side, a fresh uptrend rally is possible only after the dismissal of 18850. Post the breakout, the Nifty is likely to rally till 18900-18935,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd.
Nifty trend seems to be sideways to negative, as long as it remains below 18900
“Nifty failed to reach a new high and fell just 1 point short of its all-time high as selling pressure was observed at higher levels. The Relative Strength Index (RSI) displayed a bearish crossover, indicating a weakening bullish momentum. The current trend seems to be sideways to negative, as long as the index remains below 18900. On the downside, a support level is identified at 18700. If the index decisively falls below this level, it may trigger a significant correction in prices,” said Rupak De, Senior Technical analyst at LKP Securities.
Nifty support placed at 18808–18783
“Nifty has been facing stiff resistance at the zone of 18870–18900. Despite multiple attempts, it has been unable to surpass it. The hourly momentum indicator has a negative crossover which is a sell signal and could be the reason for the weakness in the Nifty. On the downside the Nifty is trading around the key hourly moving averages 18808–18783 which can act as a support,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Nifty resistance seen at 18880 – 18900
“The Bollinger bands are contracting indicating that there could be more consolidation before it resumes trending moves. Overall, we continue to maintain our positive outlook on the index for targets of 19000. In terms of levels, 18700–18660 shall act as a crucial support zone while 18880 – 18900 shall act as a crucial resistance zone,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Nifty OI data
“Volume profile indicates Index has a strong support around 18700-18650 zone. Coming to the OI Data, on the call side, the highest OI was observed at 18800 followed by 18900 strike prices while on the put side, the highest OI is at 18800 strike price. On the other hand, Bank nifty has support at 43350-43500 while resistance is placed at 44150 levels,” said Deven Mehata, Equity Research Analyst at Choice Broking.
Bank Nifty Outlook
Bank Nifty stuck in range of 44000–43500
“Bank Nifty’s 20-day moving average of 43976 acted as a stiff resistance and the index was unable to surpass it. The Bank Nifty is still stuck in a range and until the zone of 44000–43500 is not decisively breached on either side the range-bound action is likely to continue,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Bank Nifty will only resume its upward movement with a breakout above 44000
“Bears in the Bank Nifty have maintained their hold on the resistance level of 44000. The index will only resume its upward movement with a breakout above 44000 on a closing basis. The overall market sentiment remains negative, suggesting a sell-on-rise approach. The lower-end support level is at 43400, which is the last hope for the bulls. The momentum indicator RSI is trading below the level of 60 which confirms the weak momentum on the upside,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.