The GIFT Nifty was flat during Thursday’s early trading session, indicating a tepid opening for domestic indices NSE Nifty 50 and BSE Sensex. After trading in the red for most of Wednesday’s session, Nifty pared its losses to close 0.16% in the green at 19,465. From its intraday lows, Sensex gained over 500 points to settle at 65,539.42, clocking a gain of 0.12%.
Wall Street ended lower on Wednesday after the Federal Reserve’s minutes showed central bank officials were divided over the need for more interest rate hikes at their last meeting, according to Reuters. S&P 500 gave up 0.76%, the Nasdaq Composite crashed 1.15%, and the Dow Jones Industrial Average lost 0.52%. Shares in the Asia-Pacific region were trading in the red on Thursday. China’s Shanghai Composite and Shenzhen Component were 0.75% and 2.18% lower respectively. Japan’s Nikkei 225 traded with deep losses of 1.39%. South Korea’s Kospi declined 1.39% while Hong Kong’s Hang Seng fell 2.16%. The Taiwan Weighted index recorded a loss of 0.82%.
Nifty 50 short-term outlook feeble
“Nifty bounced back from the lowest point of the day. Nevertheless, the short-term outlook remains feeble, given that the index concluded the session below the vital short-term moving average (21EMA). The Relative Strength Index (RSI) shows a bearish crossover, further amplifying the pessimistic sentiment. The prevailing trend will continue to lack strength as long as it maintains levels below 19,521, where the 21EMA is situated. Looking downward, the initial support level is positioned at 19,250,” said Rupak De, Senior Technical analyst, LKP Securities.
Nifty 50 support at 19296
“Nifty formed a higher top and higher bottom formation compared to the previous session. Intra day falls keep attracting buy-on-dips action. Nifty needs to cross 19,558 to beget higher confidence in the up move. 19,296 could be a support in the near term,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
Nifty 50 might see weakness from highs
“The negative chart pattern like lower tops and bottoms is intact. Having formed a new lower bottom at 19,257 on Monday, the odds of Nifty forming another lower top could be high in the short term. Currently, the strong cluster resistance is placed around 19,550-19,600 levels (down sloping trend line, daily 10/20 day EMA) and one may possibly expect weakness from the highs for this week. Immediate support is placed around 19,250-19,300 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Bank Nifty Outlook
Bank Nifty near 20-week moving average
“Bank Nifty has closed in the negative for the fifth consecutive trading session. It has reached the 20-week moving average and hence the fall may not be severe from current levels. The trend is still negative, however oversold, and we can observe divergence on the hourly charts which indicates that a pullback is possible over the next few trading sessions. The pullback can stretch higher till 44,400 – 44,500,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty near 100 DMA
“The Bank Nifty index recently found support at a crucial level, the 100-day moving average (DMA), positioned at 43,600.The index’s potential to experience a pullback rally is contingent on maintaining this level above the 100DMA on a closing basis.The immediate obstacle for the index is situated around 44,000. An upward breach beyond this level could validate a move towards 44,300 or 44,500 levels,” said Kunal Shah, Senior Technical & Derivative analyst, LKP Securities.