Nifty Technical Analysis & Technical Analysis of Bank Nifty
Frequently Asked Questions:
For August 20, 2024
Analysis for Today’s Market by Nagaraj Shetti,
Senior Technical Research Analyst at HDFC Securities
After the stellar performance on Friday, Nifty took breather on Monday with range bound action and closed the day higher by 31 points. After opening with a positive note, the market was not able to sustain the opening gains and slipped into minor weakness from the highs in the early part of the session. It later shifted into a narrow range movement for mid to later part and closed the day with choppy movement.
A small negative candle was formed on the daily chart with minor lower shadow. Technically, this pattern indicates consolidation movement post decisive upside breakout of Friday. Nifty is currently placed at the hurdle of upper area of previous down gap of 5th Aug at 24685 levels.
The short-term trend of Nifty continues to be positive. Having placed at the key overhead resistance around 24700, there is a possibility of some more consolidation or minor dip in the next 1-2 sessions, before showing another round of upside breakout. Immediate supports to be watched at 24400 levels.
What is Vaishali Parekh prediction for Nifty 50?
(Vice President — Technical Research at Prabhudas Lilladher)
Domestic stock market indices closed flat in the on Monday, August 19. The indices witnessed some profit booking amid mixed global cues ahead of the US Federal Reserve meeting.
The Bombay Stock Exchange (BSE) Sensex closed 0.02 per cent lower at 80,424.68 points, compared to 80,436.84 points in Friday’s market close. The Nifty 50 index closed 0.13 per cent higher at 24,572.65 points, compared to 24,541.15 points in the previous session.
Vaishali Parekh, vice president of technical research at Prabhudas Lilladher, says the Nifty witnessed a sluggish day in the 24,570 points zone, maintaining the positive bias and sentiment, with upside movement expected in the coming days. Parekh estimates the Nifty 50 Spot index to get support at 24,400 points and have a resistance at 24,750 points. The Bank Nifty index would have a daily range of 49,900 to 50,800 today.
Stock market today:
For the outlook on the Nifty 50 and the Bank Nifty index, Vaishali Parekh said, “Nifty, after the strong pullback on Friday session, witnessed a sluggish day hovering near the 24,570 zone, maintaining the positive bias and sentiment, with upside movement anticipated in the coming days.”
“Nifty can surge ahead with the next target of 24,800 open with the broader markets also actively supporting the benchmark index. BankNifty once again witnessed resistance near the 50EMA zone of 50,750 levels and ending in the red to come again inside the rectangular box with crucial and important support zone maintained near the 49,700 zone as mentioned earlier,” said the stock market expert.
Parekh added that the Nifty 50 for today has support at 24,400, while the resistance lies at 24,750. The Bank Nifty index would have a daily range of 49,900 to 50,800.
Technical Analysis of Nifty & Bank Nifty Mr. Devarsh Vakil –
Deputy Head Retail Research, HDFC Securities
Nifty rose for the third consecutive session to close at 24572, with the gain of 0.13% or 31 points. Cash market volumes on the NSE were lower by 3% as compared to the last session on Friday.
Broader market Indices outperformed with a good margin where Nifty Small cap 100 Index surged 1.71%. Advancing shares outnumbered the declining shares by a factor of 2.
Among sectors, Nifty Metal, OIL/GAS and PSU Banks gained the most while Auto, Private Banks and Financial services fell the most. Nifty PSU Bank index rose 1.2% amid FM Sitharaman’s review meet with PSBs’ heads.
Investors are eagerly awaiting Federal Reserve Chair Jerome Powell’s speech at Jackson Hole, Wyoming later this week. There have previously been significant policy announcements made in this location.
Nifty has retraced more than 50% of the entire fall witnessed from all-time high of 25078 to the recent swing low 23893. Nifty has also reclaimed level above its 20 DEMA, placed at 24390 odd levels. The downward gap formed on 5th August between 24686 and 24350 is partially filled now. For negating the entire gap resistance, Nifty needs to close above 24686 level. The band of 24470-24500 could offer support to Nifty in the coming sessions. A close above 24686, could propel the Nifty index towards new all-time highs.
Share Market today live & Nifty Analysis by Shrikant Chouhan
Head Equity Research Kotak Securities
Today, the benchmark indices witnessed lackluster activity. Nifty ends 31 points higher while the Sensex was down by 12 points. Among Sectors, Metal and Oil and Gas indices outperformed, both the indices rallied over 1.5 percent whereas intraday profit booking were seen in selective Auto stocks.
Technically, after a gap up opening market witnessed narrow range activity. We are of the view that, the larger market texture is still into the positive side but fresh uptrend rally possible only after dismissal of 24650/80725 Above which market could move up till 24725-24775/81000-81200. On the flip side below 24520/80330 the intraday selling pressure is likely to accelerate. Below the same, it could retest the level of 24450-24400/80000-79800.
Nifty write up by Osho Krishan,
Senior Analyst – Technical & Derivatives, Angel One Ltd
Choppy session for NIFTY, ending with no significant price change
The positive global cues and strong developments from the previous session resulted in a favorable start for our markets, but the subsequent buying was lacking in the benchmark index. The Nifty50 index remained within a narrow range of around 110 points, indicating tentativeness among the counterparties. Despite the hustles, the Nifty index had a modest positive start to the new week, closing above 24570, with a slight gain of 0.13 percent.
The market breadth clearly favoured the Bulls, with their dominant performance in the Advance-Decline ratio reflecting a robust market undertone. However, the benchmark index stayed in a slender range, hovering within the bearish gap on the daily time frame chart. A decisive breakthrough is expected to have a significant impact on the momentum, providing a clearer picture of potential future market movements. It is anticipated that 24700 will serve as the next important resistance for Nifty, followed by 24800-24850. Additionally, the 20-day EMA positioned around the 24390 zone is projected to act as a supportive barrier, helping to mitigate any minor blips in the comparable period.
Going forward, it will be crucial to closely monitor the Banking index, as momentum in this sector could significantly boost market sentiments. In the absence of domestic triggers, it is important to be mindful of global developments as they are likely to influence market conditions. It is advisable to stay informed about global trends to understand the overall market dynamics better.
Share Market today live by Rajesh Bhosale,
Equity Technical Analyst, Angel One.
Truncated week ends on a high note, Nifty reclaims 24500
The week began quietly, and with the absence of positive momentum early on, Nifty edged lower ahead of the mid-week holiday on Thursday. However, as the markets reopened on Friday, improved global sentiments led to a strong gap-up opening. As the day progressed, it became an exceptional trading session for the bulls, erasing the sluggishness of the past few sessions and closing above 24500 with a gain of 1.65%, finishing the week with an overall gain of 0.71% compared to last Friday.
The bulls are back, as recent sessions have established a base around the key support of the 50-Day EMA, and Friday’s strong momentum suggests that prices are forming a structural bottom. Prices have closed above the recent congestion zone, and a range breakout is visible on the hourly charts. Additionally, Nifty has closed above the 20-Day EMA, which previously acted as resistance. With these technical indicators, it seems there’s more fuel for Nifty on the upside. In the upcoming sessions, we may see levels of 24700 and 24850 being tested, which could serve as immediate hurdles. If global markets remain supportive, we might even retest the 25000 levels and beyond. Conversely, the bullish gap left today around 24200 is critical; the observations above hold as long as it is defended. However, if breached, the market may head back toward the lower levels of 24000 and 23900. Traders are advised to monitor these levels and consider a buy-on-dip approach. We also observed broad-based buying, with strong performance in midcap counters, suggesting a stock-centric approach could uncover outperforming opportunities.
Share Market today live & Nifty Analysis by Sumit Bagadia
On the outlook for the Indian stock market today, Sumeet Bagadia said, “The Nifty 50 index is in the 23,900 to 24,400 range. Bullish or bearish trends can be assumed on the breakage of either side of the range. Till then, investors are advised to maintain a buy-on-dips strategy as the overall trend is sideways to positive. The market bias may improve once the 50-stock index ends above 24,250 on a closing basis. Those who believe in a stock-specific approach may look at breakout stocks for intraday trading as some look strong on the technical chart pattern.”
Market wrap by Amol Athawale,
VP-technical Research, Kotak Securities:
In this truncated week, the benchmark indices witnessed positive momentum, the Nifty ends 0.71 percent higher while the Sensex was up by 730 points. Among Sectors, IT index outperformed rallied 4.60 percent whereas PSU Banks and Media indices shed over 2 percent. Technically, post short term correction the market took the support near 50 day SMA ( Simple Moving Average ) or 24100/79000 and bounce back sharply. A promising reversal formation on daily and weekly charts and long bullish candle on daily charts indicating further uptrend from the current levels. For the trend following traders 24400/79900 and 24300/79700 would act as a key supports zones. Above the same, the bullish formation is likely to continue. On the higher side 24650/80600 and 24750/81000 would be the key resistance areas for the bulls. However, below 24300/79700 uptrend would be vulnerable. For Bank Nifty it has formed double bottom reversal formation on daily charts, which is largely positive. 50000 would be the sacrosanct support levels for the short term traders. on the higher side 20 day SMA or 50900 and 51200 would act as a crucial resistance areas for the trend following traders.
>> Fundamental Angle for Today’s Market
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