The Indian benchmark equity indices are likely to see a weak opening on Friday amid mixed global cues.
The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading flat at around 19,389 level as compared to the Nifty futures’ previous close of 19,428.30.
On Thursday, the market failed to sustain intraday gains and ended lower amid the monthly derivatives expiry. Nifty declined 94 points to close at 19,254.
Nifty formed a long bear candle on the daily chart with minor lower shadow.
“Technically, the pattern indicates that the market is now placed at the edge of downside breakout of the support around 19,250-19,200 levels. The negative chart pattern like lower tops and bottoms is intact on the daily chart. After the formation of a recent lower top at 19,452 levels, the Nifty is now placed to form another lower bottom below 19,229 levels in the short term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
He believes the underlying trend of Nifty remains choppy with weak bias and there is a possibility of weakness below 19,200 levels in the coming sessions.
Also Read: 5 things that changed for market overnight: Gift Nifty, US PCE inflation among key global market cues for Sensex today
Here’s what to expect from Nifty and Bank Nifty today:
Nifty
The Nifty faced resistance at the 21-day Exponential Moving Average (21EMA), which resulted in a market correction.
“Two consecutive unsuccessful attempts to surpass the critical 21EMA level led to an increase in selling pressure. The overall sentiment remains pessimistic, with the likelihood of any upward rallies being met with selling activity,” said Rupak De, Senior Technical analyst at LKP Securities.
According to him, on the downside, the initial support level is placed at 19,200. If the index falls below the 19,200 level, it could potentially move towards the 19,000 mark.
“The sell on rise strategy is expected to favour the traders until the Nifty convincingly surpasses the 19,500 level,” he added.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — 1st September
Bank Nifty
The Bank Nifty index faced persistent selling pressure and ended 243 points lower at 43,989.
“The upcoming sessions are crucial for the bulls as they aim to defend the critical support zone of 44,000-43,800. Failure to hold this support level could trigger additional declines, potentially pushing the index towards the 43,000 mark,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
On the upside, the immediate obstacle for the index lies at 44,200. If the index manages to breach this level, it could set the stage for further upward movement towards the 44,500 level, Shah 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.
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