Nifty predictions August 7: Index may face resistance at 19,600; Bank Nifty needs to hold above support level of 44,500
equity market is likely to open on a cautious note on Monday following weakness in Asian markets. Trends on Gift Nifty indicate a flat opening for the benchmark index. Gift Nfty was trading 0.04% higher at 19,596.00.
The Nifty index bounced back on Friday, witnessing a small pullback after a correction in the last couple of sessions. Nifty rallied 135 points to end at 19,517 on Friday. The index found support at 19,300.
The index formed a small positive candle on the daily chart with minor upper and lower shadow, indicating upside bounce in the market “The Nifty has been forming a bearish pattern like lower tops and bottoms in the last 6-7 sessions and the present upmove could be in line with the new lower top formation of the sequence. However, the lower top reversal needs to be confirmed," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. On the weekly chart, Nifty formed a reasonable negative candle with upper and long lower shadow.
“This shows a formation of high wave type pattern at the highs, which signal the market is in a corrective mode with volatility," Shetti added. He believes the short term trend of Nifty remains negative and the present upmove could encounter strong hurdle around 19,600-19,650 levels in the coming sessions. Also Read: Gift Nifty, weak Asian markets to fall in Apple share price - key triggers for the Indian stock market today Nifty saw a breakdown from the recent consolidation on the daily timeframe and the correction pulled the index below the 21-day exponential moving average (EMA) for the first time since March 29.
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