Nifty 50, Sensex today: What to expect from Indian stock market in trade on August 23

The Indian stock market indices, Sensex and Nifty 50, are likely to open on a muted note Friday following weak sentiment in the global markets.

The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 24,834 level, a discount of nearly 6 points from the Nifty futures’ previous close.

On Thursday, the domestic equity benchmark indices ended higher, with the Nifty 50 closing above the 24,800 level.

The Sensex gained 147.89 points, or 0.18%, to close at 81,053.19, while the Nifty 50 settled 41.30 points, or 0.17%, higher at 24,811.50.

Nifty 50 formed a small negative candle on the daily chart at the swing highs, which is indicating a choppy movement at the resistance.

“Nifty is currently placed at the hurdle of previous opening downside gap of August 2 around 24,850 - 24,960 levels. Though, Nifty placed at the gap resistance, still there is no indication of any significant reversal pattern building at the highs,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to Shetti, the short-term trend of Nifty continues to be positive amidst range movement and a decisive upmove from here is expected to pull Nifty towards the new all-time high of 25,100 levels in the near term.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty 50 Prediction

Nifty 50 continued with lackluster movement on the higher side on August 22 and closed the day with reasonable upside gains and above the 24,800 level.

“The Nifty 50 remained rangebound for another trading session. On the daily chart, the Nifty continues to move towards the upper Bollinger band. Additionally, the index has been sustaining above the critical near-term moving average. Sentiment may continue to favor the bulls as long as it remains above 24,650,” said Rupak De, Senior Technical Analyst, LKP Securities.

On the other hand, he expects the current rise might extend towards 25,000 in the near term.

VLA Ambala, Co-Founder of Stock Market Today noted that Nifty 50 index formed a small Bearish Belt Hold candlestick pattern on the daily chart, suggesting a potential downtrend.

“Despite a slight dip, the Nifty index remained above the 23,800 mark. The benchmark index is also expected to touch its August monthly high within the next 6–13 days, as it is only 1% away from its all-time high. The RSI readings stand at 60 on a daily timeframe, while the weekly and monthly readings are above 70, indicating a strong trend,” said Ambala.

Keeping this in mind, for the next 2–5 days, she recommends considering a ‘buy-on-dip’ strategy to take advantage of the potential swing movement.

Nifty can expect support levels at 24,780 and 24,650, while resistance could be seen around 24,840 and 24,950 in the next session, she said.

Nifty Options Trading Strategy

Nifty 50 extended its winning streak for the sixth consecutive session and closed the weekly F&O series on a positive note. The index continued the formation of higher highs - higher lows from the last five trading sessions.

“Nifty formed a bullish candle on weekly scale but a bearish candle on daily scale as it closed lower than its opening zones. Now it has to continue to hold above 24,700 zones to extend the move towards 25,000 and 25,100 zones whereas supports are placed at 24,700 then 24,550 zones,” said Chandan Taparia, Senior VP, Equity Derivatives & Technicals, Broking & Distribution, MOFSL.

We have seen a decline in volatility with a surge in Put Call Ratio which indicates that overall bullish bias could continue in the market, he added.

Taparia suggests option traders can initiate Bull Call Spread by buying one lot of 24,800 Call and sell one lot of 25,000 Call to continue to be with bullish bias of the market.

Bank Nifty Prediction

Bank Nifty index ended 300.15 points, or 0.59%, higher at 50,985.70, forming a green Doji candlestick pattern.

“Bank Nifty ended on a positive note finding resistance near the 51,000 zone and it would need a decisive breach above the barrier of 51,000 levels to trigger for fresh upward move with next targets of 52,600 and 53,500 levels visible in the coming days,” said Vaishali Parekh, Vice President - Technical Research, PL Capital Group - Prabhudas Lilladher.

According to Parekh, Bank Nifty would have the daily range of 50,600 - 51,500 levels.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.