Nifty 50 shows signs of bearish momentum as it consolidates around 24,200, a key support level. If the index falls below this point, a move toward 24,000 is possible, but upside is capped near 24,400‑24,500. Bank Nifty must hold the 57,100 support; a break could push it toward 56,900 and 56,650, while 57,800‑58,000 may act as resistance.
On August 17, Nifty 50 slipped 78 points to 24,288, while Bank Nifty rose 7 points to 57,498. Market breadth was weak, with 1,653 shares declining against 1,412 advancing on the National Stock Exchange.
Jay Thakkar of ICICI Securities notes that Nifty reversed from the 24,600 resistance and that 24,000 is now the most important support for the August series. The index closed just below the 24,350 maximum pain level, a concern for options traders. A move above 24,350 on the settlement day could signal a recovery.
FII positioning has turned bearish, with net Index shorts rising from about 1.5 lakh contracts to 1.75 lakh. At the same time, FII participation in the equity cash segment has dropped.
Somil Mehta of Mirae Asset advises buying Nifty futures near 24,200, setting a stop‑loss below 24,000, and targeting 24,600 and 24,800.
Jigar S Patel of Anand Rathi says Nifty is taking a breather after a 1,000‑point rally. The index tested the 24,230 40‑day EMA and bounced back, making a dip into 24,230‑24,190 a buying opportunity. A break below 24,050, a strong support zone, would hurt the bullish structure.
Jay Thakkar adds that Nifty remains in a positive structure, holding above the 24,192 Keltner mid‑band. The RSI is neutral, and one‑hour charts show bullish divergence, supporting a buy‑on‑dips approach. He recommends a stop‑loss at 24,150 and a target of 24,650.
Bank Nifty has been consolidating between 56,000 and 58,000, with the 58,000 strike having the highest call base for August. A breakout above 58,000 would confirm a move out of this range. HDFC Bank and other heavyweights are oversold, indicating potential for a bounce.
Somil Mehta advises buying Bank Nifty futures above 58,000, placing a stop‑loss below 57,000, and targeting 60,000.
Jigar S Patel notes that Bank Nifty is more resilient than Nifty. A decisive breakout above 57,885 would lead to 58,700 and 59,250. The key support is 57,120; a close below that would be a red flag.
For fresh longs, buy Bank Nifty futures at the current market price, set a stop‑loss at 56,750, and aim for targets of 58,700 and 59,250.
Overall, both indices are trading in a range but offer buying opportunities on dips if key supports hold. Traders should monitor the 24,200 and 57,100 levels closely and adjust stops accordingly.