Nifty Technical Analysis & Bank Nifty Technical Analysis
Frequently Asked Questions:
For February 29, 2024
Technical Analysis of Nifty & Bank Nifty by Mr. Nagaraj Shetti, Senior Technical Research Analyst, HDFC securities on today’s market performance.
After showing a sustainable upside bounce from the intraday lows on Tuesday, Nifty slipped into sharp weakness amidst high volatility on Wednesday and closed the day lower by 247 points. After opening with a slightly positive note, the market was not able to sustain the opening gains for long. A sharp intraday weakness got triggered at 10.45am and the Nifty continued with negative trend in the second half of the session.
A long negative candle was formed on the daily chart, that has engulfed the last two sessions bull and bear candles. Technically, this formation signals trend reversal on the downside and one may expect further weakness in the short term.
Positive chart pattern like higher tops and bottoms is intact and present weakness could be in line with new higher bottom of the pattern. The next crucial lower levels to be watched around 21800 and 21700 levels (ascending trend line and 10-week EMA). Nifty has bounced up from near these levels in the past, but a slide below 21700 could open sharp fall in the near term. Immediate resistance is placed around 22150-22200 levels.
Technical Analysis of Nifty & Bank Nifty by Mr. Deepak Jasani, Head of Retail Research, HDFC Securities.
Nifty logged its biggest point and percent loss in 25 sessions on Feb 28. At close, Nifty was down 1.11% or 247.2 points at 21951.2. Cash market volumes on the NSE were lower than the previous two sessions at Rs.0.94 lakh cr. Broad market indices fell more than the Nifty even as the advance decline ratio fell to 0.21:1, the lowest since December 20, 2023.
Asian stocks were mostly lower on Wednesday in cautious trading ahead of a U.S. inflation reading this week that could influence the timing of the Federal Reserve’s easing cycle. European stocks struggled for traction as traders brace for a slew of economic data in the second half of the week that will help determine the path of monetary policy.
Nifty formed a bearish Engulfing pattern, engulfing the previous two candles. A breach of 21801 on the downside could bring more bearishness while 22085 could act as a resistance in the near term. Markets seem to be coming out of sideways move and looking set to fall. The next two days will determine whether this will happen or once again the markets will come back into sideways move.
Technical Analysis of Nifty & Bank Nifty by Amol Athawale, Vice-President – Technical Research, Kotak Securities (for the week commencing from 19 February 2024)
n the past week, the benchmark indices bounce back sharply, the nifty ends 1.15 percent higher while the Sensex was up by 830 points. Among Sectors, Auto index outperformed rallied 4.40 percent whereas Media, Metal and FMCG stocks witnessing profit booking at higher levels. During the week, after a short-term correction, the market took the support near 21600/70900 and reversed. Post reversal, Nifty/Sensex rallied over 500/1700 points. Technically, on weekly chart, the index has formed bullish candle and on intraday charts is holding uptrend continuation formation, which is largely positive. We are of the view that, the current market texture is bullish but 22150/72700 could act as a crucial resistance zone for the bulls. Post 22150/72700 breakout the market could move up till 22300-22400/73000-73200. On the flip side, below 21800/71700 the sentiment could change. Below 21800/71700, the market could retest the level of 21600-21500/70900-70700.
For bank nifty, the short term texture is in to the bullish side but 50 day SMA or 46815 (Simple Moving Average) could act as a key resistance area for the traders. If it sustained above the same, then it could move up till 47300. However, below 45900 traders may prefer to exit out from the trading long positions.
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