The Indian equity market is expected to open on a brighter note on Monday, August 18, with global and domestic indicators suggesting a positive direction. The major highlights are the summit of US President Donald Trump with Russian President Vladimir Putin, mooted GST reforms, and indications from the derivatives segment.
Gift Nifty Trends
The Gift Nifty traded close to 24,915, about 230 points above Nifty futures' last close, indicating a gap-up strong opening in benchmark indices.
Indian markets remained closed on Friday, August 15, to mark the nation's 79th Independence Day. On Thursday, both indexes ended marginally higher:
Sensex rose 57.75 points (0.07%) to close at 80,597.66
Nifty 50 rose 11.95 points (0.05%) to close at 24,631.30
Sensex Technical View
Analysts feel the Sensex is giving hopeful signs:
A daily and weekly chart bullish reversal pattern.
Support level: 80,300 – if the index remains above this, the tone is likely to remain positive.
Resistance level: 80,900 – a close above this could push the index to 81,500–81,800.
Should Sensex fall below 80,300, weakness can take it down to 79,800–79,100.
Nifty 50 Technical View
The Nifty 50 broke the six-week falling streak, creating a bullish candle on the weekly chart and closing higher than its 100-day EMA and 21-week EMA, indicating initial hints of a reversal.
Levels of support: 24,540–24,200 zone
Joined resistance: 24,700–24,830
A strong breakout above 24,800 can lead Nifty to the 25,000 level
Indicators such as RSI and MACD indicate that momentum is shifting but a definitive trend reversal is awaited.
Analysts advise a buy-on-dips approach, as there is a strong support zone in the range of 24,300–24,200.
Derivatives Outlook
Data of open interest indicates:
Highest Call OI: 24,700 strike
Highest Put OI: 24,600 strike
This shows that the 24,700 level is a key resistance point, and traders are looking for a close above this level to continue bullish momentum.
Bank Nifty View
The Bank Nifty ended at 55,341.85, advancing 160.40 points (0.29%), to post a bullish candle on Thursday.
Support levels: 55,000 and 54,800–54,900 zone
Resistance levels: 55,700–55,960
The index remains in the red, below important short-term moving averages (9-EMA, 20-SMA, 50-SMA), and that may limit upside momentum.
Technical analysts expect a range-bound movement with modestly positive tilt, provided support at 55,000 holds.
Bottom Line
Indian equities would begin the week on a positive note, riding on optimistic global signals and supportive technical configurations. Traders must be careful close to resistance levels and follow buy-on-dips strategy as long as Nifty and Sensex remain above their significant support levels.
Disclaimer: The above views are market analysts' opinions. Investors must consult certified financial planners before making investment decisions.
