Stock market today: What to expect from Nifty, Sensex, Bank Nifty in trade
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading lower at 19,449 level as compared to Nifty futures’ Friday’s close of 19,503.
Nifty fell below 19,500, exhibiting signs of weakness, characterized by a lower top formation. On Friday, the Nifty index ended 115 points lower at 19,428.
Nifty formed a long bear candle on the daily charts, indicating a downside breakout of the smaller range movement of the last few sessions.
“The negative chart pattern like lower tops and bottoms continued as per daily timeframe chart and the swing high of 19,645 of 9th August could be considered as a new lower top of the sequence. Hence, the market is expected to slide down to 19,290 or lower in the coming sessions to confirm a new lower bottom of the sequence,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Meanwhile, derivatives market data shows FIIs’ long exposure in index futures fell to 40%, signifying a short-term bearish bias. The put-call ratio is approaching oversold territory as it stands at 0.91.
Nifty
From a technical standpoint, the Nifty continues to exhibit a bearish trend as it remains below the 21-day Exponential Moving Average (21EMA).
“The Relative Strength Index (RSI) is also indicating a bearish crossover. In the short term, there’s a possibility that the index might decline towards the 19,300 level. On the upside, there’s a resistance level situated at 19,500,” said Rupak De, Senior Technical analyst at LKP Securities.
Santosh Meena, Head of Research, Swastika Investmart Ltd. believes the challenge lies in surpassing the 20-day moving average (20-DMA), positioned around the 19,650 mark.
“On the downside, immediate support rests at 19,300. A breach below this level could expose Nifty to further declines, possibly targeting the 19,191 and 18,888 levels. The re-establishment of bullish momentum hinges on a rebound above the 20-DMA,” Meena said.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — 14th August
Bank Nifty
The Bank Nifty index breached the crucial support level at 44,400, signaling a continued dominance of bears. The index fell 343 points to 44,199 on Friday.
“The prevailing sentiment seems to lean towards selling on rallies, with an immediate resistance level observed around 44,500. Looking ahead, the index’s next significant support is positioned at 43,700, which might serve as a buying zone for the bulls, potentially triggering a bounce back,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Meena said that the breach of Bank Nifty below the crucial support level of 44,444 opens the door to a potential support zone ranging from 43,500 to 43,300.
“A bullish resurgence would necessitate a successful breach of the 50-day moving average (50-DMA) at 44,700,” Meena added.
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Updated: 14 Aug 2023, 07:46 AM IST
