The Indian stock market indices, Sensex and Nifty 50, are expected to open strong on Tuesday, following gains in global markets. The Gift Nifty index suggests a positive start, trading around 24,655, which is 65 points higher than the previous close of Nifty futures.
On Monday, the market ended flat due to profit booking at higher levels. The Sensex slightly dropped by 12.16 points to close at 80,424.68, while the Nifty 50 decreased by 31.50 points, or 0.13%, to finish at 24,572.65.
Nifty 50 formed a small negative candle on the daily chart, indicating some consolidation after a recent breakout. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the short-term trend for Nifty remains positive. However, with resistance around 24,700, there may be some consolidation or a minor dip before the next upward movement.
Nifty 50 Outlook:
The Nifty 50 index showed a range-bound movement on August 19, ending the day up by 31 points. Rupak De, Senior Technical Analyst at LKP Securities, believes the trend remains bullish as long as Nifty stays above 24,300. He sees potential resistance at 24,750 – 24,800.
VLA Ambala, Co-Founder of Stock Market Today, noted that Nifty is trading above its 20-day Exponential Moving Average (EMA) on the daily chart, and is close to its all-time high. Ambala advises investors to be cautious, as the market shows signs of being overbought. For intraday traders, she suggests looking for buying opportunities during dips, with support between 24,470 and 24,400, and resistance between 24,650 and 24,730.
Bank Nifty Outlook:
The Bank Nifty index had a choppy session on Monday, ending with a loss of 149 points at 50,368, forming a bearish pattern on the daily chart. Chandan Taparia, Head of Equity Derivatives and Technicals at MOFSL, said Bank Nifty needs to hold above 50,250 to bounce back towards 50,750 and 51,000 levels, with support at 50,250 and 50,000 zones.
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