The Indian benchmark equity indices are expected to open higher on Tuesday following positive cues from Asian peers.
The trends on Gift Nifty also indicate a start in the green for the Indian benchmark index. The Gift Nifty was trading flat at around 19,890 level as compared to Nifty’s previous close of 19,753.80.
Nifty bounced on Monday after weakness in the last couple of sessions. The index shifted into a sustainable upside bounce and closed the day higher by 107 points.
On the technical front, Nifty formed a positive candle on the daily chart with minor lower shadow.
“This pattern indicates an upside bounce in the market after a small decline. After forming a series of higher highs and higher lows over the last 2 months, Nifty seems to have formed minor degrees of lower highs and lower lows in the last 4-5 sessions amidst range movement. This pattern could be reflecting ongoing consolidation in the market. However, a sustainable move above 19,870 levels is expected to negate this bearish pattern,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Shetti believes the underlying trend of Nifty remains choppy and a decisive move above the immediate resistance of 19,870 levels could open sharp upside towards the next resistance of around 20,000 mark in the near term.
Also Read: Gift Nifty, Asian markets to rising crude oil prices – key triggers for Indian stock market today
Nifty
The Nifty index showed a positive trend with a green candle on the daily chart, indicating a potential comeback by the bulls.
“The short-term trend remains positive as Nifty found support at the 21EMA in the previous session. However, the RSI is currently in a bearish crossover, suggesting a potential downside. The lower end support is at 19,700, while resistance is at 19,800. A decisive move above 19,800 might induce a rally towards the 20,000 mark,” said.
Also Read: F&O cues: Nifty futures signal trade in 19,300-20,200 range during August series
Bank Nifty
Bank Nifty reversed losses and gained 183 points to close at 45,651 on Monday. The index found support around the 20-day moving average (20DMA) positioned at 45,400. Meanwhile, levels around the 45,700-45,800 zone are acting as a significant resistance area.
“A break above this resistance zone would signal the bulls taking complete control and potentially lead the index to fresh all-time high levels. However, if the index breaks below the 45,300 level, it may indicate further downside potential towards 45,000-44,700 levels, as the bears gain momentum and exert additional selling pressure,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
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Updated: 01 Aug 2023, 08:00 AM IST