GIFT Nifty was 0.01% higher during Tuesday’s early trading session at 19,390, indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. Domestic benchmarks NSE Nifty 50 and BSE Sensex broke their two-day slide on Monday. Sensex rose by 0.41% to 65,216.09, and Nifty 50 increased by 83 points, settling nearly at 19,400 at 19,393.6.
NSE Nifty 50 Outlook
Nifty 50 to consolidate further
“Nifty is likely to consolidate further until either of 19,300 or 19,500 level is taken out. The support of 19,300 also coincides with the 50% Fibonacci retracement level drawn from the low of 18,647 made on 26th June to the high of 19,992 made on 20th July. For a decisive breakout on the upside, Nifty needs to give a strong close above the falling trendline drawn connecting the high of 19,992 made on 20th July; 19,868 made on 27th July; 19,796 made on 1st August and 19,646 made on 9th August,” said Ajit Mishra, SVP – Technical Research, Religare Broking.
Nifty 50 near 50 SMA
“Technically, after a muted opening, the Nifty took support near the 50 day SMA (Simple Moving Average) or 19320 and reversed the trend thereafter. On daily charts, the index has formed a bullish candle and on intraday charts, and has also formed a double bottom formation. As long as the index is holding the 19,320 level, the bullish sentiment is likely to continue. Above which, the index could rally till 19,475-19,500. On the flip side, below 19,320, the uptrend would be vulnerable and could slip till 19,250-19,225,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
Nifty 50 hurdle around 19500
“Though, Nifty placed at the immediate supports, there is a lack of strength observed in the upside bounces. Hence, such repeated testing of the supports without showing any significant upside bounces could eventually result in a decisive downside breakout of the said supports. Further upside from here could encounter strong hurdle around 19,500 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Bank Nifty Outlook
Bank Nifty sees pullback
“Bank Nifty has also witnessed a pullback and snapped the seven-day losing streak. It has closed in the green and more importantly, holding on to the support of the 20-week moving average (44000) which indicates that a pullback is likely in the short term. The pullback can last till the 44,400 – 44,500 zone,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty support around 43,750
“The Bank Nifty saw a recent attempt by bulls to defend the support around 43,750, coinciding with the 100 DMA. Maintaining this support suggests a bullish stance for the index. Immediate resistance lies at 44200. A breakthrough could pave the way for further gains towards 44500.The momentum indicator, RSI, trading in oversold territory, signals the potential for a bounce from current levels. This factor should not be disregarded,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.