The SGX Nifty recorded a 0.15% loss during Thursday’s early trading session, with a value of 18,881.5 indicating a flat opening for domestic indices NSE Nifty 50 and BSE Sensex. On Wednesday, Sensex touched a fresh life-time high of 63,588.31, after which, the benchmark trimmed some gains and settled 0.31% higher. Nifty 50 gained 40.15 points to 18,856.85.
U.S. indices fell on Wednesday as Federal Reserve Chair Jerome Powell said the fight to lower inflation still has a “long way” to go, while grains prices jumped on worries about crop shortfalls around the globe. The Dow Jones Industrial Average fell 0.30%, the S&P 500 slid 0.52% while the Nasdaq Composite declined 1.21% on Wednesday.
Shares in the Asia-Pacific region were trading in the red on Thursday, following negative cues from Wall Street. China’s Shanghai Composite tanked 1.31% in trade, while Japan’s Nikkei 225 slipped 0.13%. Hong Kong’s Hang Seng index crashed 1.98% while South Korea’s Kospi was higher by 0.44%. The Taiwan Weighted index recorded minor gains of 0.1%.
NSE Nifty 50 Outlook
Nifty 50 charts indicating positivity
“On the intraday charts the Nifty is holding a higher bottom formation, which is broadly positive. For traders, 18,780 would be the key support level to watch out for and above the same, the index could move up till 18,900-18,950. However, a quick short-term correction is not ruled out if the index trades below 18,780 and slips till 18,720-18,700,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
Nifty could move to new all time highs
“NSE Nifty 50 is currently placed at the edge of moving into new all time high above 18,887 levels. The market is repeatedly making an attempt to witness an upside breakout, but was not able to succeed due to lack of strength at the hurdle. The underlying trend of Nifty continues to be positive with range bound movement. A decisive move above 18,900 levels is expected to open the next upside towards 19,100-19,200 levels in the near term. Immediate support is at 18,730 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Nifty resistance seen at 19,000
“On Wednesday, the Nifty index experienced a largely flat and sideways movement. Despite this, the overall trend remains positive as the index managed to stay above the 18,800 level, which is considered as immediate support. In the short term, a crucial support level is observed at 18,700, where a substantial number of Put writers have shown their presence. This suggests that there is a significant amount of buying interest and support at that level. On the higher end, a resistance level is noted at 19,000, where Call writers are waiting to defend the price level. A rise above 19,000 may induce further rally in the market,” said Rupak De, Senior Technical, LKP Securities.
Nifty 50 indicators providing divergent signals
“The daily and hourly momentum indicators are providing divergent signals which are leading to the range-bound price action. Prices are trading around the resistance zone of 18,780 – 18,800 where multiple swing highs are placed. Once this zone is surpassed, we can expect further upside in the index. Crucial support levels to keep handy are 18,660 – 18,610 and 18,880 – 18,900 is the crucial resistance level,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Bank Nifty Outlook
Bank Nifty consolidating
“Bank Nifty has been consolidating since the last 5 trading sessions around the 20-Day Exponential Moving Average (DEMA), which stands at 43,837 currently. A decisive breakout on either side of the range will provide cues about its future direction. Bank Nifty will be in a no-trade zone as long as it is trading between the 43,400-44,050 range,” said Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.
Bank Nifty witnessing battle between bulls and bears
“The Bank Nifty index is currently witnessing a continued battle between the bulls and the bears. It has a support level at 43,500, which is indicated by the presence of maximum put writing. On the other hand, there is resistance at 44,000Ce, where the highest open interest is seen on the call side. Within the range, it is advisable to adopt a buy-on-dip approach,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.