The Indian benchmark equity indices are expected to open flat on Tuesday amid mixed global cues.
The trends on Gift Nifty also indicate a flat-to-negative start for the Indian benchmark index. The Gift Nifty was trading around 19,386 level as compared to the Nifty futures’ previous close of 19,399.
Nifty found support at the 50-day exponential moving average (EMA) placed at around 19,250-19,300 levels.
On Monday, Nifty witnessed a bounce back and closed 83 points higher at 19,394. The index snapped two days of correction.
Nifty formed a positive candle on the daily chart with minor upper shadow.
“Technically, this pattern indicates narrow range movement in the market at the support of 19250-19300 levels. Though, Nifty placed at the immediate supports, there is a lack of strength observed in the upside bounces. Hence, such repeated testing of the supports without showing any significant upside bounces could eventually result in a decisive downside breakout of the said supports," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Here’s what to expect from Nifty and Bank Nifty today:
Nifty
The Nifty index exhibited a positive tone as it maintained levels above the crucial support point of 19,250.
“A breach below this level could potentially spark unease within the market, causing concerns among investors. However, as long as the index holds above the 19,250 mark, there is a potential upward trajectory towards the 19,500 level. A confident breakthrough above 19,500 has the potential to catalyze a sustained and substantial market rally," said Rupak De, Senior Technical analyst at LKP Securities.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — 22nd August
Bank Nifty
The Bank Nifty index rose 151 points to 44,002 on August 21.
“The Bank Nifty saw a recent attempt by bulls to defend the support around 43,750, coinciding with the 100DMA. Maintaining this support suggests a bullish stance for the index. Immediate resistance lies at 44,200. A breakthrough could pave the way for further gains towards 44,500," said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
The momentum indicator, RSI, trading in oversold territory, signals the potential for a bounce from current levels. This factor should not be disregarded, he added.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 22 Aug 2023, 07:27 AM IST
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