Nifty 50, Sensex today: What to expect from Indian stock market in trade on August 5

Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open sharply lower on Monday tracking a sell-off in global markets.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,365 level, a discount of nearly 335 points from the Nifty futures’ previous close.

On Friday, the domestic equity indices ended over a percent lower each amid profit booking.

The Sensex plunged 885.60 points, or 1.08%, to close at 80,981.95, while the Nifty 50 settled 293.20 points, or 1.17%, lower at 24,717.70.

Nifty 50 formed a reasonable negative candle on the daily chart with a gap up opening and the opening downside gap remains unfilled.

“Technically this market action is indicating a short-term top reversal pattern for the Nifty at the new high of 25,078 levels. The unfilled opening down gap could be considered as a bearish breakaway gap, which is normally formed at the crucial top reversal patterns. This is a negative indication,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He believes the short-term trend of Nifty 50 is down, but the near-term uptrend status of the market is intact. According to him, there is a possibility of some more weakness in the coming sessions down to 24,600 - 24,500 levels before showing any upside bounce from the lows.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty 50 Prediction

Nifty 50 index slipped into sharp weakness amidst weak global cues and closed the session on August 2 lower by 293 points.

“Nifty has slipped sharply amid a global sell-off. Technically, it has drifted down after forming a spinning top on the daily timeframe. The RSI indicator has turned downward, indicating a bearish crossover. The market appears to be favoring “sell on rise” traders as long as it remains below 24,800,” said Rupak De, Senior Technical Analyst, LKP Securities.

On the downside, he believes the Nifty might drift towards 24,530 or 24,400.

VLA Ambala, Co-Founder of Stock Market Today noted that while the weekly and monthly RSI values are still above 75, indicating an overbought condition, the daily RSI has cooled to 60, with the price trading at 24,720.

“It should be noted that the price deviation from the 20-day EMA is about 1%, so market participants should be prepared for any dip between 5% and 12% from the 25,000 mark, as it could present a strong buying opportunity in the bullish trend. As for swing trading and short-term investing, stocks consolidating in the support range can be lucrative,” said Ambala.

According to her, the Nifty index can expect support at the 24,520 and 24,440 levels, with resistance around the 24,780 and 24,860 levels in case of a flat or slight gap opening today.

Bank Nifty Prediction

Bank Nifty index ended 213.85 points, or 0.41%, lower at 51,350.15 on Friday, forming a bullish candlestick pattern with an upper shadow on the daily charts.

“Bank Nifty has been underperforming as compared to Nifty index with resistance witnessed near 51,800 zone during the week and has maintained the significant 50-EMA (Exponential Moving Average) level of 51,000 as the immediate and crucial support zone as of now. Bank Nifty would have the weekly range of 50,400 - 52,500 levels,” said Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher Pvt. Ltd.

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.