It is expected that the Nifty 50 and Sensex will begin trading at a lower level. In the Presence of Global Market Weakness The negative trends observed in global markets are expected to result in a weak opening for the Indian stock market indices, Sensex and Nifty 50, today. The Gift Nifty, which functions as a barometer for the opening direction of the Indian stock market, was trading at approximately 24,380, a 155-point discount from the most recent close of the Nifty futures.

On the preceding Friday, there was a substantial decline in the domestic equity markets. The Sensex and Nifty 50 both experienced a nearly 1% decline, with the former closing at 80,604.65 and the latter at 24,530.90. The Nifty 50’s daily chart illustrated the formation of a lengthy bear candle as a result of this declining trend. The previous bullish candle was engulfed by this candle, which indicated a potential trend reversal.

Market Forecasts and Technical Analysis

Nagaraj Shetti, a Senior Technical Research Analyst at HDFC Securities, defines the bearish engulfing pattern as typical of a peak reversal that follows a substantial upward movement. Shetti anticipates that the short-term will continue to be feeble in the context of this technical pattern.

The weekly chart of the Nifty 50 displays a small negative candle with a long upper shadow, which is reminiscent of a shooting star pattern. This pattern’s validation could predict a substantial trend reversal. Shetti is of the opinion that the Nifty’s short-term trend has reverted from its all-time highs, which implies that there may be additional volatility in the near future.

Prospects for the Nifty 50 in the Future

Rupak De, Senior Technical Analyst at LKP Securities, noted that the Nifty 50 experienced a significant decline on July 19, which resulted in the formation of a bearish engulfing pattern. Currently, the Relative Strength Index (RSI) is exhibiting negative divergence, which indicates a change in price momentum. The daily RSI has also entered a bearish crossover from the overbought zone. De observes that support is located at 24,500, with potential declines to 24,400 – 24,200 if breached, and resistance at 24,650 – 24,700.

VLA Ambala, the Co-Founder of Stock Market Today, recommends that short-term speculators exercise caution, while mid- to long-term investors should pursue discounted equities. Ambala predicts that the Nifty may encounter resistance between 24,625 and 24,700, while support may be located between 24,480 and 24,350.

Bank Nifty Outlook

Bank Nifty closed at 52,266 on Friday, following a decline of 355 points, or 0.67%. This led to a bearish candlestick on the daily chart. De suggests that a sell-on-rise strategy be maintained, with resistance at 52,500. He also predicts that the index will continue to decline if it closes below 52,000. Ambala anticipates that 51,950 and 51,650 will serve as support, while 52,470, 52,710, and 52,850 will serve as resistance.

Investor Guidance

Individual analysts and broking firms furnish these analyses and forecasts. Before making any investment decisions, it is advised that investors consult with certified experts.

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