Nifty predictions August 4: Crucial support for Nifty placed at 19,300; Bank Nifty needs to hold above 44,500
Nifty indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading 32.50 points, or 0.17%, higher at 19,484.00. On Thursday, Nifty fell for the third consecutive session ending 0.74%, or 144.90 points, lower at 19,381.65.
Broad market indices ended in the positive, while the advance decline ratio closed at 1.06:1. Nifty formed a small negative candle on the daily chart with upper and lower shadow. This pattern indicates a formation of high wave type candle pattern, reflecting ongoing volatility in the market.
“Normally, such high wave formation after a reasonable upmove or decline cautious for impending reversal pattern. Having declined in the last few sessions and the formation of lower tops and bottoms on the daily chart indicates a possibility of minor upside bounce in the market towards the new lower top formation," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. Also Read: Gift Nifty, mixed trend in Asian markets to a fall in US stocks - key triggers for Indian stock market today Nifty breached the crucial support level 19,400 in the previous session and ended at 19,381.65 as the bears continued to remain at the helm.
“The index fell sharply following a breakdown below 19,500. However, 19,300 acted as support on a sustained basis for the day. Going forward, 19,300 may act as crucial support, while, on the higher end resistance is seen at 19,500 - 19,650," said Rupak De, Senior Technical analyst at LKP Securities.
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