- NSE Nifty 50 is expected to open lower after a sell-off in Wednesday's session
- Sensex fell 0.24% to 77,966.35 and Nifty 50 dropped 0.15% to 24,435.95 on Wednesday
- Nifty support levels are identified between 24,270 and 24,385, with resistance near 24,600
The NSE Nifty 50 is likely to commence the trading session at a downturn on Thursday, after Indian stock indices continued their sell-off session in the red on Wednesday.
The Sensex ended 0.24% lower at 77,966.35 levels, while the Nifty 50 declined 0.15% to close at Rs 24,435.95 levels.
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Global cues saw positive signals as US stocks moved higher on Wednesday after July inflation came in broadly as expected, easing fears of renewed price pressures.
The GIFT Nifty futures saw a 0.21% downturn to 24,420 at 10:46 p.m.
The Nifty Index finds support at 24,300-24,270 levels, according to Sudeep Shah, head of Technical and Derivatives Research at SBI Securities.
"On the downside, the immediate support for Nifty is placed in the 24,300-24,270 zone," he said.
Dhupesh Dhameja, derivatives research analyst, SAMCO Securities, identified 24,385–24,350 levels as the critical support zone.
"Holding the 200-DEMA (double exponentional moving average) could trigger a technical rebound towards 24,500–24,600, while a decisive breakdown would strengthen the bearish setup," Dhameja said.
A sustained reclaim of 24,500 remains essential to stabilize the near-term trend, as per the analyst.
The index finds immediate resistance in the 24,570-24,600 zone, as per Sudeep Shah.
"Any sustainable move above this zone could result in Nifty extending its pullback towards 24,750, followed by 24,900 in the short term," Shah said.
Bank Nifty
On the daily timeframe, Bank Nifty has formed a sizeable bullish candle with a minor lower indicating strong buying interest at lower levels, according to Dhameja. With the strong closing, the index has reclaimed its key short-term moving average level of 20-day EMA (extended moving average) after having closed below the same a day earlier, the analyst said.
The recent price action also indicates formation of a higher base around 57,500–57,700, making this zone an important support area, as per Shah.
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"A sustained breakout above 58,250–58,300 would strengthen the bullish setup and open the way towards 58,700–58,750, while failure to cross this hurdle could keep the index range-bound," Shah stated.
Going ahead, Dhameja identified the immediate resistance for Bank Nifty in the 58,300-58,400 zone.
"Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 58,800, followed by 59,200 in the short term. On the downside, the immediate support for Bank Nifty is placed in the 57.500-57,400 zone," he added.
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