Trading Outlook: Will Nifty 50 Break Above 24,200 and Bank Nifty Reach 50,300?
If Nifty 50 drops below this level, the 24,000 mark is possible. On the upside, 24,200-24,300 is an immediate hurdle, with 24,500 as a potential target above that.
The market saw a subdued session on August 14, closing with moderate gains as traders took lighter positions ahead of the holiday. The Nifty 50 managed to stay above 24,100, which now serves as immediate support. If it dips below this level, a drop to 24,000 is possible. On the upside, 24,200-24,300 is the next hurdle, with 24,500 as a potential target. For Bank Nifty, holding above 49,700 on a closing basis could open the way to the 50,300-50,500 zone, but falling below this level might increase selling pressure, according to experts.
On Wednesday, the Nifty 50 edged up 5 points to close at 24,144, while the Bank Nifty dropped 105 points to 49,727. On the NSE, 1,546 shares declined, while 804 advanced.
Nifty Outlook and Strategy
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, notes that Nifty has been consolidating in the 24,200 – 24,150 range, where the 40-day moving average sits. The overall structure is weak, with momentum indicators showing a negative crossover, supporting a bearish outlook. Any spike toward the key moving averages of 24,250 – 24,300 should be viewed as a selling opportunity, with targets at 23,890 – 23,600. On the upside, 24,300 is the immediate hurdle in the short term.
Key Resistance: 24,250 or 24,300
Key Support: 23,950, 23,890
Strategy: Sell with a stop-loss at 24,300 and a target of 23,950 – 23,800.
Shitij Gandhi, Senior Technical Research Analyst at SMC Global Securities
Nifty 50 is expected to remain weak as it continues to trade below the key resistance level of 24,400. In the upcoming session, we anticipate that the market will consolidate within the 24,000-24,400 range. However, if Nifty drops below the 24,000 mark, it could face additional selling pressure.
Key Resistance:24,300, 24,500
Key Support:24,000, 23,900
Strategy:Sell on a rise near 24,350 with a stop-loss above 24,550, aiming for a target of 24,000.
Vidnyan S Sawant, Head of Research at GEPL Capital
Nifty has been struggling with resistance around the 24,500 level. Weekly charts show a bearish candle pattern, while daily charts indicate consolidation below the 20-day SMA, reflecting short-term uncertainty. The RSI is flat below 45, indicating a lack of positive momentum. Nifty is holding crucial support at 23,900, but a decisive break below this could shift the trend from positive to neutral, potentially leading to further corrections down to 23,400 and 22,700. If Nifty manages to stay above 24,500, this correction scenario would be invalidated.
Key Resistance:24,500, 24,800
Key Support:23,900, 23,400
Strategy:Sell Nifty if it stays below 23,900, targeting 23,400 with a stop-loss at 24,300.
Bank Nifty – Outlook and Positioning
Jatin Gedia, Technical Research Analyst, Capital Market Strategy at Sharekhan by BNP Paribas
Bank Nifty has been leading the decline among sectoral indices, having breached its previous swing low. This suggests the downtrend is likely to continue. If Bank Nifty falls below 49,600, it could decline sharply towards 49,000 – 48,860, where it finds support at the 61.82 percent Fibonacci retracement level. Counter-trend pullbacks have been sold into, showing no signs of strength, so we maintain our negative stance on Bank Nifty.
Key Resistance:50,300, 50,400
– Key Support: 49,600, 49,500
Strategy:Sell with a stop-loss at 50,300, targeting 49,000 – 48,860.
Shitij Gandhi, Senior Technical Research Analyst at SMC Global Securities
Bank Nifty is likely to face pressure in the coming sessions, forming lower highs on broader charts. It faces major resistance in the 50,300-50,600 zone, while a break below 49,600 could increase the pressure.
Key Resistance: 50,300, 50,600
Key Support:** 49,600, 49,400
Strategy:Sell Bank Nifty on a rise near 50,300 with a stop-loss above 50,600, targeting 49,600.
Vidnyan S Sawant, Head of Research at GEPL Capital
Bank Nifty has been underperforming compared to the Nifty, trading below its nine-week low and breaking through its 20-week SMA, indicating a short to medium-term corrective phase. The daily charts show strong resistance at the 20-day SMA, with a lower top and lower bottom pattern, signaling a downtrend. The RSI is below 40 and falling, indicating weakening momentum. If Bank Nifty drops below 49,600, it could correct further to 48,300 and then 46,900.
Key Resistance:51,100, 52,300
-Key Support:49,600, 48,300
Strategy: Sell Bank Nifty if it stays below 49,600, targeting 48,600 with a stop-loss at 50,200.
Disclaimer:The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to consult certified experts before making any investment decisions.
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