Indian Equity Benchmark Indices Set to Open Tepid on Weak Global Cues
The Indian equity benchmark indices are expected to open on a tepid note on Wednesday, following weak global cues. The Gift Nifty, which provides an insight into the opening levels of the Indian benchmark index, was trading flat at around the 19,607 level. This is in comparison to the Nifty futures’ previous close of 19,609.
Tuesday saw the Nifty experiencing another choppy session and failing to sustain early gains. The index ended the day over 26 points lower at 19,571, managing to hold above the support level of 19,500.
The daily chart of Nifty shows a small negative candle that has almost engulfed the previous small positive candle from Monday. This indicates a range-bound action in the market with a weak bias. According to Nagaraj Shetti, a Technical Research Analyst at HDFC Securities, Nifty is currently placed at the immediate resistance of the down sloping trend line around the 19,650 – 19,700 levels. The negative chart pattern, with lower tops and bottoms, is intact as per the daily timeframe chart. However, confirmation of a lower top reversal pattern is needed for a bearish impact on the market. Shetti believes that the short-term trend of Nifty remains choppy.
The Nifty index managed to close above the significant 21-day EMA (Exponential Moving Average) and maintained support above the 19,500 points. Rupak De, a Senior Technical Analyst at LKP Securities, anticipates a positive trend as long as the index holds above 19,500. He suggests that there is resistance at 19,700, with the potential for a rally towards 20,000.
Shetti, on the other hand, expects a move below the 19,500 levels to open up further weakness down to the next lower supports at 19,400 – 19,350 levels.
The Bank Nifty index rose 127 points to close at 44,964 on Tuesday and is currently in a consolidation phase. Kunal Shah, a Senior Technical and Derivative Analyst at LKP Securities, points out that there is a visible support level at 44,800. If the index breaks below this level, it could trigger further downside movements towards 44,600. On the upside, a resistance level is apparent at 45,150. Shah believes that breaking above this resistance level may pave the way for a clearer upward move towards levels around 45,400 – 45,500.
In conclusion, Indian equity benchmark indices are expected to open on a tepid note amidst weak global cues. The Nifty index shows a range-bound action with a weak bias, while the Bank Nifty index is in a consolidation phase. Traders and investors should closely monitor the support and resistance levels mentioned above for further insights into the market’s direction.
