The Indian equity market is equity to open on a cautious note on Wednesday following weakness in Asian peers amid mixed global cues.
Gift Nifty was trading at 19,783 level as compared to Nifty’s previous close of 19,733.55.
The Indian equity indices ended marginally lower on Tuesday on profit booking amid the ongoing Q1 results season.
The benchmark Nifty moved into a consolidation and traded in a narrow range. The index formed a small negative candle with minor lower shadow.
“Technically, this pattern indicates lackluster movement in the market at the hurdle of a down sloping trend line around 19,800 levels. The minor degree of lower highs and lows were formed on the daily chart in the last 6-7 sessions. A decisive move above 19,865 levels is not only going to surpass the hurdle of the downtrend line, but also negate the bearish pattern of lower highs and lows,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
He believes the short term trend of Nifty remains choppy and we can see some more consolidation movement or minor weakness before showing a decisive upside breakout of the crucial overhead resistance around 19,850 levels in the short term.
Also Read: Gift Nifty, global markets to US credit rating downgrade – key triggers for Indian stock market today
Nifty
Nifty traded in a narrow range of 19,700-19,800, but stayed above the critical near-term moving average (21EMA).
“A hidden positive divergence on the daily chart indicates a potential bullish reversal in price momentum. Short-term prospects suggest a sideways to positive trend if the index stays above 19,550. A decisive move above 19,800 could drive the index towards the 20,000 mark,” said Rupak De, Senior Technical analyst at LKP Securities.
Also Read: Day trading guide for today: Six buy or sell stocks for Wednesday —August 2
Bank Nifty
The Bank Nifty index declined by 59 points to close at 45,593 level. The index is currently engaged in a persistent battle between the bulls and bears, resulting in a consolidation phase.
“A notable resistance level can be observed at 45,800, and a decisive break above this resistance would potentially pave the way for further upside movements in the index. Conversely, a significant support level is visible at 45,300. If the index breaks below this support level, it could signify the bears gaining full control, leading to potential downside movements towards 45,000-44,700 levels,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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