The Indian benchmark indices are expected to open on a somber note following weakness in Asian peers after a selloff on Wall Street.
The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading flat at around 19,525 level as compared to Nifty’s previous close of 19,526.55.
On Wednesday, the benchmark Nifty witnessed heavy selloff and ended 207 points, or 1.05% lower at 19,526.55. Broader market indices fell more than the Nifty even as the advance decline ratio fell sharply to 0.39:1, the lowest since June 23, 2023.
Also Read: Gift Nifty, Asian markets to selloff in US stocks – key triggers for Indian stock market today
The index breached the important level of 20 day EMA at 19,560 which has been providing support all through the recent upmove since March 31.
Nifty formed a long negative candle on the daily chart with minor lower shadow.
“Technically, this pattern indicates sharp negative reversal in the market. Nifty is currently placed at the edge of moving below the immediate support of up trend line at 19,500 levels as per the concept of change in polarity,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
He believes the short term trend of Nifty has turned down and one may expect more weakness in the coming days.
Nifty
According to Rupak De, Senior Technical analyst at LKP Securities, Nifty’s recent slip below its consolidation indicates a bearish sentiment.
“The index has also dropped below the 21EMA, reinforcing the bearish outlook. The RSI is signaling a bearish momentum for the future. On the downside, support is observed at 19,500, a decisive fall below 19,500 may create further negativity; while resistance is seen at 19,600, he said.
Also Read: Day trading guide for today: Six stocks to buy or sell on Thursday — August 3
Bank Nifty
The Bank Nifty index faced a bearish scenario and fell 597 points to close at 44,996, resulting in a breakdown from a rising trendline accompanied by increased trading volumes.
“Currently, the immediate resistance level for the index is at 45,200. If the index manages to break above this resistance, it could potentially trigger some buying activity in the market. On the downside, the index has the next support at 44,600/44,500 levels. If the index holds above this support zone, there is a possibility of witnessing some buying interest, leading the index towards the 45,000 level,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Catch Live Market Updates here
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.
