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Below the Technical Morning Ideas 28th August by Vaishali Parekh Vice President - Technical Research, PL Capital Group - Prabhudas Lilladher Ltd

“NIFTY / SENSEX

Nifty once again plunged heavily with a bearish candle formation on the daily chart to slip below the important 50EMA at the 24850 zone to weaken the bias and is awaiting further developments and global cues with respect to tariff rates, which shall shape the future directional move of the indices. As mentioned earlier, technically, the index would have the crucial and major support zone near the 24500 level, which needs to be sustained to keep the overall trend intact, and on the upside, a decisive move above the 25000 zone is needed to revive the overall sentiment. Sensex succumbed to selling pressure and closed just near the crucial support zone of the 100EMA level of 80826 with bias and sentiment maintained with a very cautious approach. The index is currently precariously placed, and if it sustains below the 80300 zone, then there can be a further slide expected with the 79700 zone as the next important zone to be watched for. On the upside, we continue to maintain our view; only a decisive move past the near-term hurdle of the 81500 zone shall confirm an improvement in bias and expect a further rise. The support for the day is seen at 24500 levels, while the resistance is seen at 25000 levels.

 BANKNIFTY / BANKEX

BankNifty continues to remain sluggish, Bank Nifty, with a bearish candle formation, has broken below the important and crucial support zone at the 55000 level to weaken the bias and sentiment, expecting a further slide with the next major support visible near the 53500 zone. For the bias to improve, the index needs to witness a revival and move past the significant 50EMA level at the 55700 zone to establish some conviction and thereafter expect a further rise in the coming days. Bankex with profit booking witnessed a slip down below the 61000 zone to weaken the bias, and further ahead, a decisive breach below the important support of the 200 DMA level of 59900 shall trigger fresh selling pressure with the next major and crucial support positioned near the 58300 zone. For the bias to improve, the index needs to move past the resistance hurdle of the 50EMA level of 62300 to anticipate further rise in the coming days. BankNifty would have the daily range of 53800-55000 levels.”

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