The Nifty 50 continued its downtrend for the fourth straight session, closing at 24,366 on August 14 after falling to an intraday low of 24,297. The index managed to recover most of its losses before the session ended, but it finished 0.12% lower.
After reaching a new swing high of 24,774 on August 3, the index has shed 408 points over the last nine sessions, signalling a period of consolidation. The higher‑time‑frame charts still favour bulls, but the daily trend remains bearish.
A key support area lies between 24,250 and 24,200, which is the weekly low and the 50% Fibonacci retracement of the recent rally from 23,606 to 24,774. A sustained fall below this zone could pull the index toward the critical 24,000 mark. On the upside, 24,500 is expected to act as a hurdle for the benchmark.
The market opened on a negative note, dropping further to the intraday low before strong buying interest from late‑morning trades helped it regain most of its losses.
The daily candle on Wednesday showed a Doji‑like pattern, indicating range‑bound movement and indecision among traders.
Technical indicators reinforce the bearish bias. The RSI slipped to 52.21 with a negative crossover, while the MACD stayed on its bearish side and the red histogram bar expanded, signalling weak momentum.
On the weekly chart, a negative candle followed a Doji pattern at the highs last week, suggesting a possible false breakout of the 24,500–24,600 zone.
A higher‑bottom formation has persisted over the past couple of months. According to Senior Technical Research Analyst Nagaraj Shetti, the current weakness may be part of a new higher bottom, and further consolidation is likely.
Options data show that the 24,300 strike, where the next‑highest Call open interest is concentrated, could act as an immediate support. The 24,000 level, with the maximum Call open interest, is the crucial support, while the 24,500 strike, dominated by Put open interest, serves as immediate resistance.
The India VIX fell 0.99% to 11.30 on its fourth consecutive session, marking the lowest closing level since January 13 2026. The decline reflects low uncertainty but also hints at a potential major market move.
The banking index continued its correction for a second session, falling 144 points to 57,491. The daily candle was bearish with minor shadows, and the index traded within Wednesday’s long green candle, indicating a range‑bound trend.
Bank Nifty slipped below its short‑term moving averages but stayed above medium‑ and long‑term averages. The RSI dipped slightly below 50 with a negative crossover, and the MACD hovered below the signal line, pointing to a mildly bearish bias.
Head of Technical and Derivatives Research at SBI Securities, Sudeep Shah, said the immediate resistance for Bank Nifty is 57,900–58,000. A sustainable move above this zone could push the index toward 58,400 and then 58,800 in the short term. On the downside, the support lies at 57,100–57,000.
Overall, traders will watch for a break of the 24,200–24,500 range on the Nifty and the 57,100–58,000 range on Bank Nifty to determine the next direction. Consolidation is expected in the coming sessions as the market digests recent gains and losses.