The impressive winning streak in the benchmark index came to an end after eight consecutive weeks of gains. The Nifty50 index achieved a significant milestone during the week, but the last-day sell-off, influenced by weak global cues, acted as a spoiler, resulting in a negative closure. Despite this, the week was eventful, and the Nifty settled just above 24700 with a modest decline of 0.47 per cent WoW basis.
There have been insignificant alterations to the price action for Nifty, though the overall market breadth turned a bit exhaustive, indicating a sign of caution. From a technical standpoint, the Nifty index continues to maintain a position above all its major Exponential Moving Averages (EMAs), with robust nearby support identified around the subzone of 24600-24500.
Also, till Nifty remains above this level, there shouldn’t be any significant cause for concern for market participants. On the higher end, the bearish gap on the daily chart, around 24850-24950, is likely to act as intermediate resistance, followed by the psychological mark of 25000 in the near period. Moreover, a sustained breakthrough beyond this level is anticipated to catalyse the next series of rallies in the benchmark.
Going ahead, it is crucial for us to stay alert and monitor aberrations in the global landscape, as these could potentially adversely affect the overall sentiments and trends within our market. Therefore, it is imperative that we observe these developments thoroughly and diligently over the weekend to ensure that we are well-prepared to respond effectively.
(Osho Krishan is a senior analyst of technical & derivatives at Angel One Ltd. Views expressed are his own.)
First Published: Aug 05 2024 | 6:28 AM IST
