Benchmark indices NSE Nifty 50 and BSE Sensex remain volatile amid mixed global cues. The GIFT Nifty futures were trading 23 points or 0.12% lower at 19,435. Asian markets were trading mixed – China’s Shanghai Composite Index rose 0.58%, South Korea’s KOSPI gained 0.32%, Hong Kong’s Hang Seng jumped 1.83%, Japan’s Nikkei 225 tumbled 0.77%, and Asia Dow dipped 0.1%. The US market ended Friday’s session in red – Dow Jones Industrial Average (DJIA) slipped 0.55%, S&P 500 plunged 0.29% and the tech-heavy Nasdaq fell 0.13%. On Friday, the NSE Nifty 50 sank 165.50 points or 0.85% to 19,331.80 and BSE Sensex tanked 505.19 points or 0.77% to 65,280.45.
NSE Nifty 50 Outlook
Nifty support at 19200–19180
“After a sharp run up the Nifty is now undergoing a consolidation phase which could result in a retracement of the rise it has witnessed from 18646 to 19524. The crucial Fibonacci retracement level and gap area coincide around 19200–19180 which could act as a support zone from a short-term perspective and on the upside 19520–19550 shall act as an immediate hurdle zone from a short-term perspective,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Nifty could slip till 19250-19200 if it trades below 19450
“As long as the Nifty is trading below 19450 the correction wave is likely to continue. Below the same, the market could slip till 19250-19200. On the other hand, a fresh uptrend is possible only after the dismissal of 19450. Above this, the market could move up till 19550-19625. Contra traders can take a long bet near 19200 with a strict support stop loss at 19150,” said Amol Athawale, Vice President – Technical Research, Kotak Securities Ltd.
Nifty resistance at 19500
“Nifty experienced a significant decline after failing to maintain its position above 19500. This drop led to the index falling below the 21EMA on the hourly chart, indicating an increasing bearish sentiment in the market. Furthermore, the hourly RSI has shown a bearish crossover, adding to the negative outlook. The immediate support level is identified at 19300, while the resistance level remains at 19500,” said Rupak De, Senior Technical analyst at LKP Securities.
Bank Nifty Outlook
Bank Nifty may slip till 44500-44200 if it falls below 44500
“Bank Nifty index experienced selling pressure from the bears, leading to a correction throughout the day. This upper-end movement by the bears suggests a potential reversal in the trend. The hurdle for the index is currently at 44500, where aggressive fresh call writing is observed. This level is expected to act as a resistance for further upside movement. The index broke below the support level of 45000, indicating a shift in the trend. However, follow-up action is required to confirm and sustain the downward momentum. If the index manages to sustain below 45000 on a closing basis, it is likely to continue its downward momentum towards the levels of 44500 and 44200,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Bank Nifty support at 44800
“Bank Nifty has retraced 38.2% of the entire rise and has reached a crucial Fibonacci support level of 44800. So the Bank Nifty seems to be around the support zone and we do not expect further downside. The daily momentum indicator has a positive crossover and thus this dip should be used as a buying opportunity. On the upside we expect it to target levels of 45500,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.