The Indian equity benchmark indices are likely to open on a tepid note Wednesday following weak global cues.
The Indian equity benchmark indices are likely to open on a tepid note Wednesday following weak global cues.
The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading flat at around 19,607 level as compared to Nifty futures’ previous close of 19,609.
The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading flat at around 19,607 level as compared to Nifty futures’ previous close of 19,609.
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On Tuesday, Nifty witnessed another choppy session and failed to sustain early gains to end the day over 26 points lower at 19,571. The index managed to hold above the support level of 19,500.
Nifty formed a small negative candle on the daily chart that has almost engulfed the previous small positive candle of Monday, indicating a range bound action in the market with weak bias.
“Nifty is currently placed at the immediate resistance of the down sloping trend line around 19,650 – 19,700 levels. The negative chart pattern like lower tops and bottoms is intact as per daily timeframe chart and current chart pattern indicates a possibility of a new lower top of the sequence. But, we need confirmation of a lower top reversal pattern for bearish impact on the market,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
He believes the short term trend of Nifty remains choppy.
Nifty
The Nifty index managed to close above the significant 21-day EMA and maintained support above 19,500 points.
“A positive trend is anticipated as long as the index holds above 19,500, with resistance at 19,700 and potential for a rally towards 20,000,” said Rupak De, Senior Technical analyst at LKP Securities.
Meanwhile, Shetti expects a move below 19,500 levels could open further weakness down to the next lower supports of 19,400 – 19,350 levels.
Bank Nifty
The Bank Nifty index rose 127 points to close at 44,964 on Tuesday and is currently in a consolidation phase.
“There is a visible support level at 44,800, and if the index breaks below this level, it could trigger further downside movements towards 44,600. On the upside, a resistance level is apparent at 45,150,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Shah believes if the index successfully breaks above this resistance level, it may pave the way for a clearer upward move towards levels around 45,400 – 45,500.
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