NIFTY TECHNICAL OUTLOOK

Based on Market Closing on Tuesday, August 13, 2024

In the last trading session, Nifty closed at 24,139.00, down 208.00 points or 0.85%. For the downtrend to continue, the index needs to trade and sustain below 24,100.00.

Nifty opened with a negative bias at 24,342.30 and briefly tested the day's high of 24,359.90 in the morning trade. However, the index then declined, hitting an intraday low of 24,116.50 before closing at 24,139.00. All sectors except IT closed with a negative bias, with financial services, metals, banks, and media being the biggest losers. The market breadth was negative, with 653 stocks rising, 1,931 falling, and 88 remaining unchanged. The top gainers in the Nifty index were TITAN, APOLLOHOSP, DR REDDY, and TATACONSUM, while the major losers included BPCL, HDFCBANK, SHRIRAMFIN, and HDFCLIFE.

From a technical standpoint, momentum indicators signal a negative trend, with Nifty remaining below its short-term moving averages. Additionally, the index formed a black candle on the daily chart and closed near the day's low, indicating a continued negative bias. On the downside, the index has intraday support at the 24,100 level, while resistance lies at 24,200. If the index falls below 24,100, the negative trend is likely to continue today. For a pullback rally, the index needs to surpass the intraday resistance of 24,200.

Intraday Levels: Support: 24,100, 24,000, 23,900 Resistance: 24,200, 24,300-24,400 (15-Minute Charts)

Positional Trading: Short-term Support: 24,000-23,400 Resistance: 24,685-25,080

BANK NIFTY

In the previous trading session, Bank Nifty closed at 49,831.85, registering a loss of 746.10 points. From a technical perspective, momentum indicators suggest a downward trend, with the index remaining below its short-term moving averages. Additionally, the index formed a black candle on the daily chart and closed near the day's low, indicating the potential continuation of the downtrend. On the downside, the index has short-term support at the 49,600 level.

The RSI indicator is currently at 36, suggesting that the index is in oversold territory. Historically, whenever the RSI approached the 30 level, the index has typically rebounded. For a pullback rally, the index must surpass the intraday resistance level of 50,000.

For intraday traders, support levels are at 49,800, 49,600, and 49,400, while resistance levels can be identified at 50,000, 50,200, and 50,450, as indicated by the 15-minute charts.

Positional traders should monitor short-term support levels at 49,600-48,300, with resistance at 51,000-52,450.