The GIFT Nifty traded flat during Monday’s early trading session, indicating a similar opening for domestic indices NSE Nifty 50 and BSE Sensex. Benchmark indices NSE Nifty 50 and BSE Sensex ended marginally red after trimming most losses on Friday. The Nifty 50 fell 0.05% to close at 19,646. On the other hand, Sensex tanked 106 points to end at 66,160.2.
In the USA, the S & P 500 advanced 0.99%, the Nasdaq Composite soared 1.90%, and the Dow Jones Industrial Average rose 0.55% on Friday. Shares in the Asia-Pacific region were trading in the green on Monday. China’s Shanghai Composite and Shenzhen Component surged 0.96% and 1.24% respectively. Japan’s Nikkei 225 jumped 1.9%. South Korea’s Kospi soared 1.14% while Hong Kong’s Hang Seng gained 1.84%. The Taiwan Weighted index recorded a gain of 0.62%.
Nifty consolidation may continue
“Nifty continues to be in a short term downward correction and this consolidation is likely to continue for next week. Any upside bounce from here could encounter strong resistance around 19,750-19,800 levels. The next crucial lower supports to be watched around 19,500-19,450 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Nifty 50 support seen at 19,577
“The NSE Nifty 50 index saw a muted opening on Friday, and found overhead supply off 5 & 10 DEMA currently trading at 19,690 & 19,669, respectively. The average resistance pushed the index to the lows of 19,563, however, it found modest buying interest at 20 SMA and saw a tepid intraday pullback as the index managed to close above 19,600. Going forward, the index is anticipated to attract bullish strength, provided the support of 20 SMA currently trading at 19,577 remains intact,” said Riches Vanara, Technical And Derivatives Analyst, stoxbox.
Dip indicates healthy correction in Nifty 50
“The recent dip in the market indicates a healthy correction citing the pace of decline and intermediate buying across sectors. And, Nifty has almost reached closer to the upper band of 19,300-19,500 support zone, offering opportunity for fresh positional longs in the index. However, we feel it would be prudent to use options spreads to start with and wait for a reversal signal,” said Ajit Mishra, SVP – Technical Research, Religare Broking.
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
“The bears dominated the market, and the index faced consistent selling pressure from higher levels, indicating a bearish sentiment prevailing in the market. The index managed to close just above its 20-day moving average (20 DMA), which is currently placed at 45,350. This moving average acts as a crucial support level, and a break below it could lead to further selling pressure and potentially extend the downtrend. However, if the index manages to hold above the 20 DMA, it may find some temporary support, leading to a potential pullback towards 45,700 or 45,800 levels,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.