The week began quietly, and with the absence of positive momentum early on, Nifty edged lower ahead of the mid-week holiday on Thursday. However, as the markets reopened on Friday, improved global sentiments led to a strong gap-up opening. As the day progressed, it became an exceptional trading session for the bulls, erasing the sluggishness of the past few sessions and closing above 24500 with a gain of 1.65 per cent, finishing the week with an overall gain of 0.71 per cent compared to last Friday.
Additionally, Nifty has closed above the 20-Day EMA, which previously acted as resistance. With these technical indicators, it seems there’s more fuel for Nifty on the upside. In the upcoming sessions, we may see levels of 24700 and 24850 being tested, which could serve as immediate hurdles.
If global markets remain supportive, we might even retest the 25000 levels and beyond. Conversely, the bullish gap left today around 24200 is critical; the observations above hold as long as it is defended. However, if breached, the market may head back toward the lower levels of 24000 and 23900. Traders are advised to monitor these levels and consider a buy-on-dip approach.
We also observed broad-based buying, with strong performance in midcap counters, suggesting a stock- centric approach could uncover outperforming opportunities.
(Rajesh Bhosale is an equity technical analyst at Angel One Ltd. Views expressed are his own.)
First Published: Aug 19 2024 | 6:38 AM IST
