Benchmark indices NSE Nifty 50 and BSE Sensex may open flat amid mixed global cues. The GIFT Nifty futures traded 16 points or 0.08% higher at 19,556 in early morning trade. Asian markets were trading mostly in red – China’s Shanghai Composite Index tumbled 0.52%, Asia Dow fell 0.20%, Hong Kong’s Hang Seng plunged 0.45% and Japan’s Nikkei 225 surged 0.84% and South Korea’s KOSPI rose 0.06%. The US market ended the overnight session in green – Dow Jones Industrial Average (DJIA) plunged rose 0.15%, S&P 500 gained 0.03% and the tech-heavy Nasdaq was up 0.12%. On Thursday, the NSE Nifty 50 tanked 89.45 points or 0.46% to 19,543.10 and BSE Sensex sank 307.63 points or 0.47% to 65,688.18. In sectoral indices, Bank Nifty plunged 338.90 points or 0.76% to 44,541.80, Nifty FMCG tumbled 0.91%, Nifty Pharma fell 0.74, Nifty PSU Bank plunged 0.81% while Nifty Media jumped 6.63%.
NSE Nifty 50 Outlook
Nifty support at 19500-19440-19380
“Nifty continues to hover near the 20-day SMA with no significant change in the chart structure, portraying a lack of conviction by both counterparties. Structurally the setup remains unchanged, suggesting further consolidation in the index and continuing the time-wise corrective phase. On the levels front, the bearish gap of 19678-19705 withholds the sturdy hurdle and on the lower end, 19500-19440-19380 holds the pivotal support for Nifty in the comparable period,” said Osho Krishan, Sr. Analyst, Technical & Derivative Research, Angel One Ltd.
Bank Nifty Outlook
Bank Nifty short-term target at 44000
“Bank Nifty witnessed selling pressure from the key hourly moving averages placed in the range of 45000 – 45100. The daily and hourly momentum indicator has a negative crossover which is a sell signal. The Bank Nifty has decisively closed below the 40-day moving average which is a sign of weakness. Thus both price and momentum indicators are suggesting a further downside over the next few trading sessions. On the downside 44000 is the short-term target,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty needs to overcome 45150 for bulls to regain control
“After the RBI policy, the Bank Nifty index encountered significant selling pressure, leading to a challenging situation. A substantial resistance is evident at the 45000 mark. Breaking through this resistance level could be demanding due to the prevailing selling pressure. Support can be identified around the 44400 level. A drop below this support could further empower the bears and potentially lead to additional downward movement. To regain control, bullish momentum would need to overcome the hurdle at 45150. Surpassing this level could provide the bulls with an upper hand and potentially steer the index towards a more positive trajectory,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.