The Indian benchmark equity indices are likely to open lower on Friday following losses in global peers as Asian markets and US stocks declined.
The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 19,293 level as compared to the Nifty futures’ previous close of 19,390.
On Thursday, the Nifty index lost over 57 points to close at 19,386 as investors resorted to profit booking in shares of select heavyweights
Nifty formed a long bear candle on the daily chart indicating a formation of bearish engulfing type candle pattern.
“The crucial overhead resistance of the down sloping trend line has turned out to be a false upside breakout on Thursday. This is a negative indication and signals chances of Nifty sliding down to or break below the immediate support of 19,300-19,250 levels in the near term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Any attempt of upside bounce could find strong resistance around 19,550 levels, he added.
Also Read: 5 things that changed for market overnight: Gift Nifty, Jerome Powell’s speech to global market cues for Sensex today
Here’s what to expect from Nifty and Bank Nifty today:
Nifty
The Nifty remained under the bear’s grip as selling pressure emerged around the day’s high, which resulted in a decline below 19,500.
“On the upper side, resistance is expected to persist in the range of 19,450-19,500. A definitive breakout or a closing above 19,500 could potentially trigger a rally in the index. On the lower side, there is immediate support at 19,300; a drop below this level might lead to panic in the market,” said Rupak De, Senior Technical analyst at LKP Securities.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — 25th August
Bank Nifty
The Bank Nifty index ended 17 points higher at 44,496, after witnessing selling pressure at the higher levels on Thursday.
“The Bank Nifty index recently encountered selling pressure from elevated levels and is now displaying indications of range-bound trading. The range of movement seems to be established between 44,000 and 45,000, a zone where substantial put and call writing activities are evident. In the current scenario, the index’s immediate support lies at 44,200,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
He believes if this support level is effectively maintained, the index could potentially experience a recovery, driving it towards levels of 44,800 and 45,000.
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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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