The index opened with a another gap down (19948-19901) and formed a lower high-low indicating accelerated decline below 19900 levels - ICICI Direct
![](https://portfolio.investmentguruindia.com/uploads/news/422f633627f14ea60e573d5bc3df6a1c.jpg)
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Nifty : 19742
Technical Outlook
* The index opened with a another gap down (19948-19901) and formed a lower high-low indicating accelerated decline below 19900 levels which would also act as immediate hurdle in the short term. Index need to form a higher highlow on daily time frame to indicate pause in down ward momentum and meaningful gains
* Going forward we expect Nifty to find key support in the 19600-19500 zone and undergo healthy consolidation in the broad range of 19500-20200.
* Structurally ongoing decline is part of the healthy retracement of past three week rally (19223-20222) and should not be construed as negative rather a buying opportunity
* On the broader market front, Midcap index has rallied >40% over past six months and currently undergoing a healthy retracement. In a secular bull market secondary correction is a common phenomenon wherein historically 8-10% corrections in midcap index provided incremental buying opportunity. Therefore, temporary breather/consolidation would make market healthier from medium term perspective
* Key support base at 19600-19500 is confluence of:
* a) 61.8% retracement of current up move (19223-20222), at 19605
* b) Presence of rising 50-day ema at 19550 and
* C) value of rising trendline connecting key swing lows of June and August 2023
Nifty Bank: 44623
Technical Outlook
* The price action for the day formed a strong bear candle carrying lower high -low and second bearish gap in as many days indicating extended profit booking as index breached 45000 mark contrary to our expectations
* We expect pause in current selling and supportive efforts to emerge in 44000 -44200 zone however index need to form a higher high -low on daily chart to indicate pause in downward pressure and meaningful reversal as Thursdays high at 45200 would act as immediate hurdle
* Structurally, Index has retraced past four week rally by 61 . 8 % this week leading daily stochastic close to oversold readings .
* Our view is backed by following key observations
* On higher degree, index is consolidating in a broad range of 43600 -46300 since early August as it is digesting strong rally from March lows of 38613
* PSU banks continue to relatively outperform and could lend some support at lower levels
* Heavy weight private banks including HDFC bank are now oversold and back to their key supports thereby projecting limited downside
Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631
![](https://portfolio.investmentguruindia.com/uploads/news/DLF Ltd 31 oct.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Icici Prudential Life Insurance Comp Ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/MayhemStudios26.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Bajaj Finance Ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/deputychief.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Shrey Jain.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/iphone20.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Balrampur Chini Mills Ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/IPO 6.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Ashok Leyland.jpg)
Tag News
![](https://portfolio.investmentguruindia.com/uploads/news/Nirmal bang.jpg)
Expiry Rollover Report Jul'24 Expiry by Nirmal Bang Ltd
![Nifty Aug Futures closed at 24455.40 (up 66.65 points) at a premium of 49.30 pts to spot- Nirmal Bang Ltd](https://portfolio.investmentguruindia.com/uploads/news/Nirmal bang.jpg)
![Nifty is expected to open on a flattish note and likely to witness range bound move during the day - Nirmal Bang Ltd](https://portfolio.investmentguruindia.com/uploads/news/Nirmal bang.jpg)
![Market is expected to open on a flattish note and likely to witness range bound move during the day - Nirmal Bang Ltd](https://portfolio.investmentguruindia.com/uploads/news/Nirmal bang.jpg)