The Indian equity indices are likely to see a tepid opening on Thursday amid weak global cues.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading lower at around 19,400 level as compared to the Nifty futures’ previous close of 19,466.
On Wednesday, Nifty closed the volatile session 30 points higher at 19,465, witnessing recovery from intraday lows.
The index gained support near the 19,300 level where buying emerged during the day. The index formed a small positive candle on the daily chart with minor upper and lower shadow.
“Technically, this pattern indicates a side by side bull candle type pattern, but the placement of the pattern is not ideal. Hence, one may expect minor upside bounce from here, but the sustainability of this bounce could be a big question on the market,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
The negative chart pattern like lower tops and bottoms is intact. Having formed a new lower bottom at 19257 on Monday, the odds of Nifty forming another lower top could be high in the short term, he added.
Also Read: 5 things that changed for market overnight: Gift Nifty, US Fed minutes to global market cues for Sensex today
Check out what to expect from Nifty and Bank Nifty today:
Nifty
Nifty’s short-term outlook remains feeble, given that the index concluded Wednesday’s session below the vital short-term moving average of 21-day exponential moving average (EMA).
“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 at LKP Securities.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — 17th August
Bank Nifty
The Bank Nifty continued to reel under selling pressure as the index declined 145 points to close at 43,946.
“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 100-DMA on a closing basis,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
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, he added.
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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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