WEEKLY RESISTANCE FOR NIFTY: 19500, 19700, 19900
PIVOT POINT: 19200
WEEKLY SUPPORT
FOR NIFTY: 19000, 18800, 18600
WEEKLY CHART FOR NIFTY
Indian equity benchmarks the Nifty 50 and Sensex edged higher in Monday's 14 August 2023 trading session after breaking two-session weakness after India's wholesale price index (WPI) inflation for July eased, but with a smaller-than-expected decline. There was buying interest in FMCG and IT stocks. Market participants will now be watching US July Retail Sales, Japan second quarter Gross Domestic Product (GDP) and Industrial Products data, and China July Industrial Production and Retail Sales. Indian markets will remain closed on Tuesday 15th August for Independence Day. Sensex was up 79 points, at 65401, while Nifty was up 6 points at 19434. 15 august 2023 market was closed on accounts of Independence Day. The benchmark indices ended a highly volatile session on Aug. 16 with a positive Nifty reading of around 19450. To finish, the Sensex was up 137 points to 65539 and the Nifty was up 30 points, to 19465. While volatility remained the ongoing theme, markets rallied in late trade on buying in IT, property and energy stocks, although metals came under pressure on fears that slowing demand in China could hurt sentiment going forward. Despite the recovery, markets are likely to be affected by choppy trends in the near term on concerns that higher inflation in both the domestic and global economy could delay the end of the rate hike cycle and slow growth further. Markets showed resilience in the face of weak global signals, ending just in the green. After the initial downtrend, Nifty gradually rose throughout the day, recouping all the loss to close at the 19465 level. Meanwhile, a mixed trend on the sector front kept traders on their toes, with real estate, autos and pharmaceuticals attracting buying interest while metals and banks remained subdued. The increasing impact of weak global signals hampered the ability of domestic markets to recover, resulting in continued selling pressure. The Fed's release of minutes revealed a mixed stance among its members on the need for further rate hikes, in contrast to the previously expected interest rate pause. At the same time, the Indian rupee fell as the dollar index topped 103; However, the likely RBI intervention offered some support. Additionally, the rise in US bond yields is expected to limit the inflow of foreign investment into the Indian market and further influence market dynamics. Benchmark indices ended lower on August 17 with the Nifty below 19400 amid selling across all sectors except PSU banks. At the close, the Sensex was down 388 points,to 65151 and the Nifty was down 99 points, to 19365. It turned out to be a roller coaster ride on Friday as Nifty oscillated on both sides and ended lower. Meanwhile, the majority of sectors felt the heat wherein IT, realty and pharma were among the top losers. The broader indices too traded in sync and lost nearly half a percent each. Benchmark indices ended lower in the volatile session on August 18 with Nifty around 19,300.At close, the Sensex was down 202 points at 64948, and the Nifty was down 55 points at 19310.
NIFTY: STRONG SUPPORT& STRONG
RESISTANCE LEVEL
The index has consistently remained below
its 21-day Exponential Moving Average (EMA), a sign that underscores the
prevalence of a bearish trend. On the lower end, support is placed at 19250. A
fall below 19250, may trigger a correction towards 19000 and lower. On the
higher end, resistance was placed at 19500.
TECHNICALLY SPEAKING
The Nifty experienced another weak trading day. It closed down ~55 points. On the daily charts, we can observe that the Nifty has closed well below the 40-day moving average (19358), which is a sign of weakness. Due to the decline in recent trading sessions, the Nifty also closed in the red for the fourth straight week and the weekly momentum indicator has also triggered a negative crossover, suggesting the weakness is starting on a higher timeframe. The lower upper and lower bottom formation is still intact and hence the downtrend is intact. On the other hand, we expect the Nifty to target a 19100 level.
No comments:
Post a Comment