Nifty predictions August 8: Index may face resistance at 19,700; critical support for Bank Nifty placed at 44,500
Indian stock market is expected to open on flat amid mixed global cues. The trends on Gift Nifty also indicate a tepid opening for the Indian benchmark index. The Gift Nifty was trading 0.12% lower at 19,657.
On Monday, the Nifty continued its upside bounce for the second consecutive session and closed the day higher by 80 points at 19,597. Nifty formed a small positive candle with gap up opening and with minor upper and lower shadow as per daily timeframe chart. “Technically, this pattern indicates a formation of high wave or spinning top type candle patterns.
Normally, such pattern formation after a reasonable decline or upmove signal impending reversal post confirmation. Having shown a decent upside bounce from the lows in the last few sessions, the odds of reversal from the highs is likely," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. However, the negative chart pattern like lower tops and bottoms is intact as per daily timeframe chart.
Presently, the market is in line with another lower top formation, which needs to be confirmed with decline from the highs, Shetti added. Also Read: Gift Nifty, gains in Asian markets to inflation data, key triggers for Indian stock market today The Nifty remained above the 21-day Exponential Moving Average (21-day EMA) after a brief dip below this critical average. “Going forward, the level of 19,500 is expected to serve as immediate crucial support.
The market's upward momentum is likely to persist as long as the Nifty maintains its position above this support level. On the upper end, potential resistance can be anticipated around the range of 19,700 to 19,750," said Rupak De, Senior Technical analyst at LKP Securities. Also Read: Buy or sell: Vaishali Parekh
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