6 days ago
Indian Markets Face Key Levels Ahead of Friday
Indian shares ended lower on Thursday.
The Sensex and Nifty 50 both lost value.
Higher oil prices and uncertainty involving the United States and Iran worried investors.
The Indian rupee also weakened slightly against the dollar.
Some analysts think the market could fall further if the Nifty drops below about 24,000.
Other analysts think prices could bounce if the Nifty stays above 24,100 or the Sensex stays above 77,000.
Asian markets were mixed, with South Korea rising while Japan and Hong Kong fell.
Investors are waiting for a speech by Kevin Warsh that may offer clues about US interest rates and inflation.
Sensex fell 539 points to 76,933.59, while Nifty 50 declined 117 points to 24,090.85 on Thursday.
Higher oil prices, geopolitical uncertainty and a weaker rupee pressured Indian equities.
Analysts identified 24,000-24,025 as important Nifty support and 24,200-24,400 as key resistance.
The KOSPI gained 1.51%, while the Nikkei 225 and Hang Seng declined 0.20% and 0.41%, respectively.
Investors will watch Kevin Warsh’s Jackson Hole speech for signals on inflation, interest rates and monetary policy.
- Who
- Indian stock-market investors, analysts and traders; Kevin Warsh is also scheduled to speak at Jackson Hole.
- What
- The Sensex and Nifty 50 fell, while analysts outlined support and resistance levels for Friday trading across Indian and Asian markets.
- Where
- Indian markets, along with the Hang Seng, KOSPI and Nikkei 225 markets in Asia.
- When
- The market review covers Thursday, 27 August, with expectations for Friday, 28 August.
- Why
- Markets were affected by higher crude oil prices, geopolitical uncertainty, a weaker rupee, expiry-related volatility and concerns about inflation and interest rates.
Bearish risks
Potential rebound
Near-term Indian trend
Bearish risks
Nandish Shah said the Nifty’s close below its 20-, 50- and 100-day DEMAs indicated a bearish daily-timeframe bias. A break below 24,025 could confirm a positional trend reversal.
Potential rebound
Shrikant Chouhan said the indices could see a technical bounce if the Nifty holds above 24,100 and the Sensex holds above 77,000.
Key trading levels
Bearish risks
Chouhan said a move below 24,000 for the Nifty and 76,700 for the Sensex could accelerate selling, with possible declines toward 23,900-23,850 and 76,500-76,200.
Potential rebound
Chouhan projected potential rebounds toward 24,250-24,300 for the Nifty and 77,500-77,700 for the Sensex if support holds.
Medium-term range
Bearish risks
Vipin Kumar said a decisive close below 24,000 could pull the Nifty toward 23,800 and then 23,600.
Potential rebound
Kumar said sustained trading above 24,200 could return the Nifty toward 24,380-24,400, while supportive domestic demand and FII inflows remain constructive factors.
Key facts
- Sensex close
- 76,933.59, down 539 points or 0.70%
- Nifty 50 close
- 24,090.85, down 117 points or 0.48%
- Rupee
- Closed 10 paise weaker at 95.54 per US dollar, provisionally
- Brent crude
- Traded near $88 per barrel
- Indian market support
- Nifty support was identified around 24,000-24,025; Sensex support was identified around 76,700-77,000
- Asian market performance
- KOSPI rose 1.51%, while Nikkei 225 fell 0.20% and Hang Seng fell 0.41%
- Key event
- Kevin Warsh is scheduled to speak at the annual Jackson Hole symposium on Friday
Quotes
Nandish Shah
Deputy Vice President at HDFC Securities
“FII inflows and resilient earnings momentum remain supportive for Indian equities, particularly mid-caps, where several segments are relatively insulated from global uncertainties and continue to benefit from strong domestic demand trends.”
livemint.com
“A decisive break below the prior swing low of 24,025 would confirm a positional trend reversal. On the upside, the recent swing high of 24,378 is likely to act as immediate resistance.”
livemint.com
Sources
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