1 week ago
Indian Markets Expected Flat After Seven-Session Loss Streak Ends
Indian stocks had a strong recovery after falling for seven trading sessions in a row.
The Sensex rose sharply, while the Nifty 50 closed above 24,200 according to the report.
However, the report contains an inconsistency because it describes the Nifty’s 153.55-point move as a decline even though its closing level was higher than the previous session’s close.
Gift Nifty suggested that the market might begin Friday with little change.
Analysts said the Nifty 50 still needed stronger buying to prove that the recovery could continue.
They identified 24,000 as an important floor, or support level.
They also said the area near 24,300–24,450 could make it difficult for the index to rise.
Bank Nifty was also moving sideways without a clear direction.
Overall, experts saw some improvement but continued to recommend caution.
Sensex and Nifty 50 were expected to open flat on 21 August amid mixed global cues and a muted Gift Nifty trend.
Gift Nifty traded around 24,343.5, a 50.5-point premium to the previous Nifty futures close.
Sensex rose 628.04 points, or 0.82%, to 77,537.72, while the report placed Nifty 50 at 24,231.85 after a 153.55-point move but described it as lower.
Analysts said the Nifty 50 could remain range-bound, with support around 24,100–24,000 and resistance between 24,200 and 24,450.
Bank Nifty faced resistance at 57,800–57,900, while support was identified at 57,100–57,000.
- Who
- The Sensex, Nifty 50 and Bank Nifty, with analysis from Sachin Gupta, Ponmudi R, Hitesh Rathi and Sudeep Shah.
- What
- Indian benchmark indices were expected to open flat after recovering from a seven-session losing streak, while analysts assessed their next support and resistance levels.
- Where
- The Indian stock market.
- When
- Friday, 21 August, following the previous session on Thursday.
- Why
- Mixed global cues and muted Gift Nifty trends pointed to a flat opening, while analysts said the recent recovery needed stronger follow-through buying to become a sustained reversal.
Recovery Potential
Cautious Outlook
Nifty 50 direction
Recovery Potential
A successful retest of the 24,200–24,100 zone and sustained buying above 24,400 could confirm a stronger recovery.
Cautious Outlook
The Nifty 50 remained below key short-term moving averages, and analysts said it could stay range-bound until stronger follow-through buying appears.
Investor positioning
Recovery Potential
Hitesh Rathi said investors could consider accumulating on dips while the 24,050–24,000 support zone holds.
Cautious Outlook
Rathi also said it was premature to conclude that the market had decisively turned bullish, while Ponmudi warned that selling could emerge at higher levels.
Bank Nifty outlook
Recovery Potential
A decisive break above 57,900 could trigger fresh upside momentum for Bank Nifty.
Cautious Outlook
A breakdown below 57,000 could lead to further weakness, with the index’s flat moving averages and indicators pointing to a sideways trend.
Key facts
- Expected opening
- Sensex and Nifty 50 were expected to open flat on 21 August.
- Gift Nifty
- Around 24,343.5, or 50.5 points above the previous Nifty futures close.
- Sensex close
- 77,537.72, up 628.04 points or 0.82%.
- Nifty 50 close
- 24,231.85; the report describes a 153.55-point, 0.64% decline, although this conflicts with the stated end to the losing streak and the higher closing level.
- Nifty 50 levels
- Support at 24,100–24,000; resistance at 24,200–24,300, with stronger hurdles around 24,400–24,450.
- Sensex levels
- Support at 77,000–77,365; resistance at 77,720–78,000.
- Bank Nifty levels
- Support at 57,100–57,000; resistance at 57,800–57,900.
Quotes
Sachin Gupta
Vice President – Technical Research, Choice Equity Broking
“The immediate support for Bank Nifty is placed in the 56,800–56,700 zone. A sustained move below this range could extend the index’s weakness towards 56,300.”
livemint.com
“The immediate support for the Nifty 50 is placed at 24,000–24,050. If this zone holds, the index could stage a meaningful recovery.”
livemint.com
Sources
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