Stock market today: What to expect from Nifty, Sensex, Bank Nifty in trade on August 16
Nifty is likely to see a gap-down opening on Wednesday amid weak global cues. The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading lower at around 19,389 level as compared to Nifty futures’ Monday’s close of 19,471.
On August 14, Nifty witnessed a strong recovery from day’s low, taking support at the 50-day exponential moving average (EMA) of 19,250, and closed marginally higher. The index bounced back after intraday weakness on Monday and closed the day 6 points higher at 19,435. Nifty formed a small positive candle on the daily chart with upper and long lower shadow.
“Technically, this pattern indicates a formation of high wave type candle pattern. Normally, such high wave formation after a reasonable decline or upside calls for impending trend reversal. Having declined recently, the chances of upside bounce is likely in the coming sessions," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
However, negative chart patterns like lower tops and bottoms are intact on the daily chart and Monday's low of 19,257 could now be considered as a new lower bottom of the sequence, he added. Also Read: 5 things that changed for market overnight: Gift Nifty, Fitch’s warning to global market cues for Sensex today The Nifty index displayed volatility throughout Monday’s trading session, before ending the day with minimal change. The index received support at the 50EMA, leading to a notable intraday rebound.
“However, the RSI on the daily chart demonstrated a bearish crossover, with its value dropping below 50. This could be indicative of a weakening trend. If the index falls below the 19,250 mark, it might incite a corrective movement towards the
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