The Indian equity indices are likely to open on a weak note following a selloff in Asian and US markets on dampened risk appetite.
The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading flat at around 19,310 level as compared to the Nifty futures’ previous close of 19,384.
On Thursday, the benchmark indices, Sensex and Nifty ended over half a percent lower each dragged by weak global cues.
The Nifty index slipped 99 points to end at 19,365. The index found support at 19,300 level during the day.
“A triangle type pattern is unfolding on Nifty as per daily timeframe chart and the market is currently placed near the lower end of a pattern around 19,300 levels. The attempt of upside recoveries from the intraday lows have been reversed on Thursday. The negative chart pattern like lower tops and bottoms is active on the daily chart and the market has not shown any decisive upside bounce so far,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Also Read: 5 things that changed for market overnight: Gift Nifty, China’s property crisis to global market cues for Sensex today
He believes the short term trend of Nifty remains choppy with weak bias.
Nifty
The Nifty index remained volatile throughout the previous session amid weekly options expiry.
Shetti sees a possibility of downside breakout of the key lower support around 19,300-19,250 levels in the short term and that could possibly drag Nifty down to another support of 19,100-19,000 levels in the near term.
Any rise from here could find strong hurdle at 19,600 levels, he said.
Rupak De, Senior Technical analyst at LKP Securities believes the prevailing sentiment stays negative as the index continues to stay below the crucial moving average.
“Looking at the upper range, the sell-on-rise approach might be more effective as long as the level of 19,525 remains unbroken. On the downside, levels around 19,250 serve as immediate support in case of any decline,” he said.
Also Read: Day trading guide for today: Five stocks to buy or sell on Friday — August 18
Bank Nifty
The Bank Nifty index continued its weakness and ended the day 55 points lower at 43,891.
“The Bank Nifty index displayed resilience by maintaining the support level of 43,600, which aligns with its 100-day moving average (100 DMA). This support zone becomes crucial for adopting a buy-on-dip strategy. A key resistance level at 44,200 awaits, and surpassing it could trigger short-covering and a potential move towards the 45,000 level,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
The momentum indicator, RSI, entering the oversold region suggests a potential rebound. This possibility becomes more significant if the mentioned support level holds, he added.
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.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
Download the Mint app and read premium stories
Log in to our website to save your bookmarks. It’ll just take a moment.
You are just one step away from creating your watchlist!
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
Your session has expired, please login again.
You are now subscribed to our newsletters. In case you can’t find any email from our side, please check the spam folder.
This is a subscriber only feature Subscribe Now to get daily updates on WhatsApp