Nifty 50, Sensex today: What to expect from Indian stock market in trade on August 19
- The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,670 level, a premium of nearly 72 points from the Nifty futures’ previous close.
Indian stock market indices, Sensex and Nifty 50, are likely to open higher on Monday following gains in global markets amid upbeat investor sentiment.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,670 level, a premium of nearly 72 points from the Nifty futures’ previous close.
On Friday, the domestic equity indices ended almost 2% higher each, with the Nifty 50 reclaiming the 24,500 mark.
The Sensex surged 1,330.96 points, or 1.68%, to close at 80,436.84, while the Nifty 50 settled 397.40 points, or 1.65%, higher at 24,541.15.
Nifty 50 formed a long bull candle on the daily chart with lower shadow.
“Technically, this pattern indicates an attempt of an upside breakout of the consolidation movement around 24,400 levels. Nifty has now moved towards hurdle area of previous huge opening downside gap of 5th August and the said down gap is expected to be filled soon around 24,700 levels,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
The recent downside breakout seems to have resulted to be a false breakout and that has turned into a sharp upside bounce on Friday, Shetti added. According to him, the next upside to be watched is around 24,700 and next 25,000 for the near term.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Prediction
Nifty 50 witnessed a decisive upside breakout on August 16 and closed the day with hefty gains of 397 points above the 24,500 level.
“Nifty 50 rallied above 24,500 after days of consolidating within a 400-500 point range. In the near term, Nifty may continue consolidating within the 24,300 - 24,550 range. Only a decisive move above 24,550 could trigger a directional up move in the index,” said Rupak De, Senior Technical Analyst, LKP Securities.
He believes a buy-on-dips strategy may be more effective unless Nifty decisively falls below 24,300.
VLA Ambala, Co-Founder of Stock Market Today noted that the Nifty index formed a green candlestick pattern with a long lower shadow while it traded within a 500-point range last week and after eight days of consolidation, the benchmark index breached its range, closing Friday’s session above its 50-day EMA after finding support at the 20-day EMA on the daily timeframe.
“The benchmark index Nifty’s RSI readings of 55 on the daily, 69 on the weekly, and 77 on the monthly timeframe suggest it is trading in an overvalued territory at higher frames. In this situation, traders and investors should be mindful when selecting stocks for short-term trading. I suggest they pick stocks consolidating at or below their sector valuations, as they could yield better returns,” Ambala said.
Considering these, she expects Nifty to gain support between 24,470 and 24,350 and meet resistance between 24,630 and 24,745 in the upcoming session.
Bank Nifty Prediction
Bank Nifty index surged 790 points, or, 1.59%, to close at 50,517 on Friday, forming a bullish candlestick pattern with a lower shadow on the daily charts.
“Bank Nifty formed a double bottom reversal formation on daily charts, which is largely positive. 50,000 would be the sacrosanct support levels for the short term traders. On the higher side, 20 day SMA or 50,900 and 51,200 would act as crucial resistance areas for the trend following traders,” said Amol Athawale, VP-Technical Research, Kotak Securities.
Vaishali Parekh, Vice President - Technical Research, PL Capital – Prabhudas Lilladher said that the Bank Nifty witnessed a strong pullback from the important 100 period MA level of 49,700 zone to improve the bias and with sentiment getting better, can expect for further rise once the resistance barrier of 50,800 is convincingly breached above, having higher targets of 52,000 and 53,400 levels in the coming days.
According to her Bank Nifty would have the weekly range of 49,500 - 51,800 levels.
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 making any investment decisions.
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