Stock Market Today, Nifty, Bank Nifty: Benchmark indices NSE Nifty 50 and BSE Sensex trade flat amid mostly muted global cues. The Nifty futures on Singapore Exchanges (SGX) were trading flat at 18,713 in the early morning trade. Asian markets were trading mostly flat – Hong Kong’s Hang Seng, Asia Dow and Japan’s Nikkei 225 were trading flat, China’s Shanghai Composite Index tanked 1% and South Korea’s KOSPI rose 0.4%, A. The US market ended Friday’s session broadly in red – Dow Jones Industrial Average (DJIA) tumbled 0.65%, S&P 500 plunged 0.77% and the tech-heavy Nasdaq tanked 1%. On Friday, the Nifty 50 sank 105.75 points or 0.56% to 18,665.50 and Sensex tanked 259.52 points or 0.41% to 62,979.37. In sectoral indices, Bank Nifty fell 101.95 points or 0.23% to 43,622.90, Nifty Auto tumbled 1.03%, Nifty IT sank 0.89%, Nifty Metal plunged 2.48% and Nifty PSU Bank declined 1.18%.
NSE Nifty 50 Outlook
Nifty support at 18607-18555
Dark clouds on weekly charts on Nifty 50 and Nifty 500. Market breadth thrust at the lowest level since 28 March when Nifty was below 17000. Nifty outlook bearish below 18750. 20 DEMA support at 18607 but if this breaks we may see 18555/lower. First support at 18607 and then 18555 while resistance at 18750 and 18800, according to Rahul Sharma, JM Financial.
Nifty may decline towards 18560-18500 if it falls below 18640
“Nifty prices are trading above a critical support area, which coincides near the 18640 level and aligns with the vicinity of the 21-day EMA. On sustainable fall below the same support area, a further decline towards the range of 18560-18500 cannot be ruled out. On the other hand, the validation of the 18640 support level would introduce the possibility of a bullish reversal with a potential upsurge towards 18780 and subsequently 18887,” said Arvinder Singh Nanda, Senior Vice President of Master Capital Services Ltd.
Nifty may witness further correction toward 18500-18450 if it breaches 18600-18650
“For the bulls to regain control, the upward movement should start from the current levels. However, if the levels of 18600-18650 are breached, then we might witness further price correction toward the 18500-18450 levels in Nifty. On the other hand, the bearish gap around 18750 will now act as immediate resistance, followed by the all-time high level at 18888,” said Rajesh Bhosale, Technical Analyst at Angel One Ltd.
Nifty resistance at 18880-18900
“The weakness has crept in and the wait for a new all-time high gets longer. We would still await further validations on the price to change the trend. In terms of levels, 18650 – 18600 shall act as a crucial support zone while 18880 – 18900 shall act as a crucial resistance zone,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Nifty could retest 18880 if it holds above 18650
“Nifty has formed a double top formation on the daily chart and also formed a bearish candle on weekly charts which is broadly negative. For traders, the 20-day SMA (Simple Moving Average) or 18650 would act as a sacrosanct support level. If the index trades above the same then it could retest the level of 18880 and move up to 19000. Below the 20-day SMA or 18650, the market could slip till 18500-18450,” said Amol Athawale, Technical Analyst (DVP), Kotak Securities Ltd.
Bank Nifty Outlook
Bank Nifty support at 43545-43411
Bank Nifty support at 43345 – if this breaks we may see fresh shorts. Bullish only if we sustain above 44000. First support at 43545 and then 43411 while resistance at 43832 and 43985, according to Rahul Sharma, JM Financial.
Bank Nifty may fall to 43300-43000 if it slips below 43500
“Bank Nifty 50-day SMA or 43500 would act as a key support level, above which a quick pullback rally till 20-day SMA or 44000-44300 is possible. On the other side, below 50 day SMA or 43500 it could slip till 43300-43000,” said Amol Athawale, Technical Analyst (DVP), Kotak Securities Ltd.
Bank Nifty stuck in 44000-43500 range
“Bank Nifty’s 20-day moving average of 43976 acted as a stiff resistance and the index was unable to surpass it. The Bank Nifty is still stuck in a range and until the zone of 44000 – 43500 is not decisively breached on either side the range-bound action is likely to continue,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Bank Nifty likely to trade in range of 43350-44200
“Bank Nifty is likely to trade within a wide horizontal range of 43350 to 44200, with sentiments leaning towards a sideways to a higher trajectory. Prices formed a doji candlestick pattern near the support area, adding weight to the probability of an upward move towards 44200, followed by a potential upswing towards 44500. Conversely, a sustainable decline below the support level at 43300 would shift the near-term sentiments to bearish for 42800,” said Arvinder Singh Nanda, Senior Vice President of Master Capital Services Ltd.
Bank Nifty move beyond 43500-44200 crucial for further directional movement
“Bank Nifty extended its consolidation near 44000 levels for the 6th week where it has largely hovered in the range of 43500-44000 levels. Despite profit booking seen in most of the banks, fresh buying in the private sector heavyweight HDFC Bank helped Bank Nifty to hold 43500 levels. Going ahead, we believe ongoing consolidation may continue and move beyond the ongoing range of 43500-44200 is crucial for further directional movement,” said Raj Deepak Singh, Analyst – F&O, ICICIdirect.
Bank Nifty may rise to 45000 if it closes above 44200-44300 range
“If Bank Nifty closes above the range of 44200-44300 it will start moving towards 45000 in the coming weeks. The resistance is at around 43900, 44000 and the support is at around 43600, 43700 till the time Bank Nifty breaks this range it is expected to remain sideways. Technical indicator RSI is at around 48 whereas the 200 EMA is at 41456,” said Mitesh Karwa Research Analyst at Bonanza Portfolio.