NSE Nifty 50 and BSE Sensex may remain under pressure today amid negative global market sentiment. The Nifty futures on the Singapore Exchange (SGX) were down 25 pts or 0.15% trading at 17,373.50 in the early morning. Asian markets were trading mixed with China’s Shanghai Composite index rising 0.32%, Hong Kong’s Hang Seng climbed 1.99% while Japan’s Nikkei 225 fell 0.04%. The US equity indices ended the overnight session in the red territory with Dow Jones Industrial Average (DJIA) falling 0.71%, S&P 500 dropping 0.30%, and the tech-heavy Nasdaq dipping 0.10%. On Tuesday, the NSE Nifty fell 88.75 pts or 0.51% to 17,303.95 and BSE Sensex tanked 326.23 pts or 0.55% to 58,962.12. Sectoral indices ended mixed with Bank Nifty falling 38.05 pts or 0.09% to 40,269.05.
Nifty 50 outlook today
Nifty 50 support at 17323, and then 17239
“Nifty first support placed at 17323 and second at 17239. The resistance is placed at 17512 and 17617,” said Rahul Sharma, JM Financial.
“Nifty is surging above its 200-DMA as global cues are jittery. US bond yields are approaching 4%, which is putting pressure on global equity markets. The market is extremely oversold, so a pullback from lower levels cannot be ruled out in the short term. 17130 is an immediate support level, while 17500 will now act as a resistance area. Nifty has to move above 17625 for any kind of reversal,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Nifty 50 to target 17200 level from short-term perspective
“On the hourly charts, the 20-hour moving average (17383) is acting as a stiff resistance and any bounce towards it is being sold into. The downtrend is still intact and any bounce should be used as an opportunity to create fresh short positions. On the downside we expect the Nifty to target levels of 17200 from a short-term perspective,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Global investors’ interest weakening due to slowdown in economy
“Global investors’ interest in the equity market is weakening due to the slowdown in the economy, led by high inflation and contractionary monetary policy. Inflows are being diverted to safe assets, and corporate earnings growth is dropping, affecting the performance of the stock market and demanding a downgrade in valuation. The double whammy for India is that it is expensive compared to other EMs, resulting in underperformance among the global market,” said Vinod Nair, Head of Research at Geojit Financial Services.
Nifty’s further decline towards 17150–17100 appears imminent
“Finally, the bears managed to drag the Nifty below the line of polarity, the 200-day moving average, on a closing basis. The sentiment looks very negative from here as the index sustains below the crucial long-term average. A further decline towards 17150–17100 appears imminent, as bulls appear to be in no hurry to support Indian equities. On the higher end, immediate resistance is visible at 17400, above which the current trend may reverse,” said Rupak De, Senior Technical Analyst at LKP Securities.
Nifty has strong support around 17150-17200 zone
“The volume profile indicates Nifty has strong support around the 17150-17200 zone. Coming to the OI Data, on the call side, the highest OI was observed at 17400 followed by 17500 strike prices while on the put side, the highest OI is at 17000 strike price,” said Om Mehra, Equity Research Analyst, Choice Broking.
Bank Nifty outlook today
Bank Nifty support at 40300 and then 40104
“Bank Nifty support is placed at 40300 and 40104 while resistance is placed at 40671 and 40846,” said Rahul Sharma, JM Financial.
Bank Nifty remains in buy-on-dip mode with support at 39700
“The Bank Nifty index witnessed range-bound trading action and formed a Doji candle on the daily chart. The index support stands at 39700 and the resistance is visible at 40300 a break on either side will lead to trending moves. The index within the range remains in a buy-on-dip mode with support at 39700,” said Kunal Shah, Senior Technical Analyst at LKP Securities.
Bank Nifty support at 39450-39600
“Bank nifty has support at 39450-39600 while resistance is placed at 40800-41000 range,” said Om Mehra, Equity Research Analyst, Choice Broking.