The GIFT Nifty traded higher during Friday’s early trading session, up by 0.28% at 19,506.5, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex extended losses for the third session. The Nifty 50 gave up 145 points to close at 19,381.65. On the other hand, Sensex slipped 0.82% to end at 65,240.68.
The Dow Jones Industrial Average declined 0.19% on Thursday, while the S&P 500 tanked 0.25% and the tech-heavy Nasdaq Index fell 0.1%. Shares in the Asia-Pacific region were trading in the green on Friday, snapping the global rout following the Fitch Ratings’ downgrade. China’s Shanghai Composite and Shenzhen Component were up by 0.78% and 0.84% respectively. Japan’s Nikkei 225 was mildly in the green at 0.05%. South Korea’s Kospi declined 0.16% while Hong Kong’s Hang Seng jumped 1.95%. The Taiwan Weighted index recorded a loss of 0.63%.
Nifty 50 support seen at 19,300
“Nifty slipped further as the bears continued to remain at the helm. The index fell sharply following a breakdown below 19,500 However, 19,300 acted as support on a sustained basis for the day. Going forward, 19,300 may act as crucial support, while, on the higher end resistance is seen at 19,500/19,650,” said Rupak De, Senior Technical analyst, LKP Securities.
Nifty 50 must trade above 19,300
“On the technical front, Nifty gapped down 62 points today as it opened under selling pressure. The index attempted to reclaim the gap area, however, it failed to sustain and pared nearly 240 points to mark the day low at 19,296. The index recovered 85 points from the low and closed slightly below 19,400. It will be crucial that the index continues to sustain above the support of 19,300 going forward,” said Riches Vanara, Technical And Derivatives Analyst, stoxbox.
Nifty 50 charts indicate possibility of upside bounce
“Normally, such high wave formation after a reasonable upmove or decline cautious for impending reversal pattern. Having declined in the last few sessions and the formation of lower tops and bottoms on the daily chart indicates a possibility of minor upside bounce in the market towards the new lower top formation. On the upper side, 19,550-19,600 is expected to be a sell on rise opportunity. Immediate support is placed at 19,300 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Bank Nifty Outlook
Bank Nifty under 40-DMA
“Bank Nifty has also witnessed a continuation of the fall. It has closed below the 40-day moving average (44,861) which is a sign of weakness. On the downside, the fall appears overstretched and hence a pullback cannot be ruled out. It can bounce till 45,000 – 45,200 where the key hourly moving averages are placed. Overall, the trend is still negative and we expect it to drift lower to 44,000 in the short term,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty under control of bears
“The Bank Nifty index remains under the control of the bears, leading to a correction with the index reaching the 44,500-44,400 zone. This zone holds critical importance as it acts as a crucial support level for the index. If the index fails to sustain this level, further downside movements might be expected towards 44,000 levels,” said Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities.