NIFTY Technical Outlook

Based on Market Closing on Thursday, August 01, 2024

In the last trading session, the Nifty closed at a record high of 25,010.90, gaining 59.75 points or 0.24 percent. The positive trend is expected to continue in the coming days if the Nifty remains above the short-term support level of 24,870.

The Nifty opened positively at 25,030.90 and maintained its momentum, reaching a record high of 25,078.30 in the morning trade. However, the index faced selling pressure at higher levels, gradually falling to an intraday low of 24,956.40 before closing at 25,010.90. The biggest sector gainers were FMCG, financial services, and pharma, while the losers included media, realty, PSU banks, and auto. The market breadth was negative, with 868 stocks rising, 1,689 falling, and 97 remaining unchanged. The top gainers in the Nifty index were POWERGRID, COAL INDIA, ONGC, and DRREDDY, while the major losers were M&M, HEROMOTOCO, TATA STEEL, and SBIN.

From a technical standpoint, momentum indicators signal a positive trend, with the Nifty remaining above both the short-term and long-term moving averages. The index formed a small white candle on the daily chart and closed at a record high, indicating the possibility of continuing the bullish trend. The index has short-term support at the 24,870 level, and if it remains above this level, the positive trend is likely to persist. The nearest intraday resistance is at the 25,080 level.

Intraday Levels:  Support: 24,900, 24,800, 24,700 Resistance: 25,080, 25,150-25,225 (15-Minute Charts)

Positional Trading: Short-term Support: 24,870-24,200 Resistance: 25,500-26,000

Bank NIFTY

In the preceding trading session, Bank Nifty closed at 51,564.00, registering a gain of 10.60 points. From a technical point of view, momentum indicators suggest a downward trend. However, the index remains above its long-term moving averages. The index formed a small black candle on the daily chart but closed above the previous day's close. On the lower side, the index has intraday support at the 51,435 level. If the index remains above this level, bullish trends will likely continue. The nearest intraday resistance is at the 51,800 level. For a strong bullish trend, the index needs to close above 51,900. Otherwise, the recent consolidation will continue for a few more days.

Intraday Levels: Support: 51,435, 51,200, 50,900 Resistance: 51,800, 52,000, 52,300 (15-Minute Charts)

Positional Trading: Short-term Support: 50,650-49,300 Resistance: 51,900-53,250

In the last trading session, the US and European markets closed deep in the red. This morning, the Asian markets also opened with a negative bias, and the SGX Nifty was in the red during morning trade. Following the global trend, the Indian market also opened with a negative bias. However, a bounce-back is expected.