The GIFT Nifty was flat during Wednesday’s early trading session, down by 0.5 points at 19,474, indicating a tepid opening for domestic indices NSE Nifty 50 and BSE Sensex. On Tuesday, the equity benchmarks were closed on account of Independence Day. Prior to that, on Monday, Nifty 50 and Sensex closed flat. Nifty 50 gained 0.03% to close at 19,434.55, while Sensex settled at 65,401.92, clocking a gain of 0.12%.
The Dow Jones Industrial Average tanked 1.02% on Tuesday, while the S&P 500 fell 1.14% and the tech-heavy Nasdaq Index crashed 1.16%. Shares in the Asia-Pacific region were trading in the red on Wednesday. China’s Shanghai Composite and Shenzhen Component were 0.36% and 0.37% lower respectively. Japan’s Nikkei 225 traded with deep losses of 1.18%. South Korea’s Kospi declined 1.441% while Hong Kong’s Hang Seng fell 1.21%. The Taiwan Weighted index recorded a loss of 0.83%.
Nifty 50 resistance at 19550
“The Nifty index displayed volatility throughout the trading session, before ending the day with minimal change. On the daily chart, it’s evident that the index received support at the 50 EMA, leading to a notable intraday rebound. However, the RSI on the daily chart demonstrated a bearish crossover, with its value dropping below 50. This could be indicative of a weakening trend. If the index falls below the 19,250 mark, it might incite a corrective movement towards the 19,100-19,150 range in the near future. Conversely, resistance can be identified at the 19,550 level on the higher side,” said Rupak De, Senior Technical Analyst, LKP Securities.
Nifty 50 charts suggesting small bounce
“Nifty recovered after a two day fall, but made a lower top, lower bottom formation. It has formed a high wave type pattern suggesting a small bounce.The 19,563-19,576 band could be the next resistance while the 19,201-19,234 band could offer support in the near term,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
Nifty 50 charts indicate possibility of upside bounce
“Normally, such high wave formation after a reasonable upmove or decline cautious for impending reversal pattern. Having declined in the last few sessions and the formation of lower tops and bottoms on the daily chart indicates a possibility of minor upside bounce in the market towards the new lower top formation. On the upper side, 19,550-19,600 is expected to be a sell on rise opportunity. Immediate support is placed at 19,300 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Bank Nifty Outlook
Bank Nifty near 20-DMA
“Bank Nifty has formed a doji pattern on the daily charts. This pattern after a sharp fall indicates that Bank Nifty can consolidate from a short-term perspective. After falling for three consecutive weeks, it has reached the 20-week moving average (43,880) which can restrict a sharp decline from hereon. However, the overall trend is still negative, and we expect levels of 43,500 from a short-term perspective,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty: Sell on rise
“The recent Bank Nifty closing formed a doji candlestick pattern on the daily chart. Support at 43,800 signifies its resilience, while substantial put writing at 44,000 suggests confidence in its stability. However, call writing at 44,500 could hinder upward movement. A “sell on rise” strategy might be prudent until a clear breakout above 44,500 resistance is observed, as per the analysis,” said Rupak De, Senior Technical Analyst, LKP Securities.