Stock Market Today, Nifty, Bank Nifty: Domestic benchmark equity indices may trade lower amid negative global cues. On the Singapore Exchange, Nifty futures were trading lower, down 103 points, at the 17,515 level. Wall Street tumbled sharply on Thursday dragged by banking stocks; the Dow Jones Industrial Average fell 1.66%, the S&P 500 lost 1.85% and the Nasdaq Composite dropped 2.05%. Asian markets followed suit, and are trading with sharp cuts. Japan’s Nikkei 225 traded lower by 1.12%, and South Korea’s Kospi lost 0.90% in its first hour of trade. China’s Shanghai Composite and Shenzhen Component traded lower by 0.73% and 0.90%, respectively. Hong Kong’s Hang Seng index dropped 2.16%. On Thursday, NSE Nifty 50 fell 164.80 pts or 0.93% to 17,589.60 and BSE Sensex tanked 541.81 pts or 0.90% to 59,806.28. In the sectoral indices, Bank Nifty fell 320.35 pts or 0.77% to 41,256.75, Nifty Auto fell 1.83%, Nifty IT fell 1.01%, Nifty PSU Bank fell 1.13%, Nifty Realty dipped 1.17%.
Nifty outlook
Nifty support at 17500-17411, resistance at 17645-17772
“Nifty current down-move should mature in the range of 17500-17411 from where one can expect a possible reversal. Book profits in shorts, First support placed at 17500 and then 17411, resistance at 17645 and 17772,” said Rahul Sharma, JM Financial.
“Going ahead, 17500 followed by 200SMA placed at 17430 would be considered sacrosanct support and we remain hopeful that buying will re-emerge at lower levels. On the flip side, the 61.8% retracement level (17800) that we have been highlighting since the last couple of sessions remains a stiff resistance, and for the trend to technically turn into a positive need to close above it with some authority; before that 17700 should also be considered as immediate resistance,” said Rajesh Bhosale, Technical Analyst at Angel One Ltd.
Nifty trend likely to remain bearish
“Nifty has formed a bearish engulfing pattern on the daily chart, which suggests a bearish reversal. Besides, the index has slipped back into the declining channel; however, on the lower end, it found support at the 14DMA. The trend is likely to remain bearish until it remains below 17700. On the lower end, the bears may take the Nifty to 17500/ 17400,” said Rupak De, Senior Technical Analyst at LKP Securities.
Nifty range of consolidation likely to be 17500-17925
“On the daily charts, we can observe that the 40-day moving average (17764) acted as a stiff resistance and the Nifty is facing selling pressure from the zone of 17760 – 17800. Overall, the range of consolidation is likely to be 17500-17925 from a short-term perspective,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Nifty has strong support around 17450-17500 zone
“Nifty has broken its important support of 17585, which is also the 200-Day EMA but has managed to close above these levels. On daily charts, the Nifty has formed a bearish engulfing pattern, indicating that the market is bearish. The volume profile indicates Index has strong support around the 17450-17500 zone. Coming to the OI Data, on the call side, the highest OI was observed at 17700 followed by 17800 strike prices while on the put side, the highest OI is at 17500 strike price,” Devan Mehata, Equity Research Analyst at Choice Broking.
Nifty meaningful strength will come above 18000 mark
“Nifty has made a near-term bottom around the 17300 level, but 17800 is acting as a supply zone. We can say that Nifty has a trading range of 17400–17800 for the time being; however, any meaningful strength will come only above the 18000 mark,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Bank Nifty outlook
Bank Nifty first support at 41247 and then 41110, resistance at 41644-41903
“Bank Nifty formed a near-inside body candle. The first support is seen at 41247 and the second at 41110. The resistance is placed at 41644 and 41903,” said Rahul Sharma, JM Financial.
Bank Nifty 41600-42000 a critical supply zone
“Bank Nifty is outperforming, but 41600–42000 is a critical supply zone. Only above the 42000 level can we expect any meaningful short covering. On the downside, the 20-DMA around 41000 is a key support level,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
Bank Nifty immediate support on the downside at 41200, upside hurdle at 41800
“The Bank Nifty bears came back strong, and the index witnessed higher-level selling pressure. The index is stuck in a broad range between 41000-42,000 levels and a break on either side will set the direction. The immediate support on the downside is visible at 41200 and the upside hurdle is at 41800. Traders should play on both sides as long as the index trades in the mentioned trading zone,” said Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.