Technical indicators still signal weakness. Analysts caution that the index could slide toward 24,200 unless it breaks past crucial resistance.
The Nifty 50 ended below its immediate support of 24,500, driven by persistent selling pressure in financials on Tuesday.
Technically, Nifty remains under pressure, trading below its 20-day, 50-day, and 100-day Exponential Moving Averages (EMAs), indicating that the short- to medium-term trend is still negative.
Trade Setup For August 13
SEBI-registered analyst Mayank Singh Chandel noted that if Nifty sustains below 24,500 in Wednesday’s opening session, it could slide towards the next key support at 24,330. On the upside, immediate resistance stands at 24,600.
A break above 24,750–24,800 will be needed to reverse the prevailing downtrend.
Short Covering Rally Likely?
Bharat Sharma of Stockace Financial Services observed that markets repeated a ‘mountain reversal’ pattern similar to the previous few sessions, where it first climbs, reaches a peak, and then reverses, indicating a situation where bears lose their grip momentarily and leave room for bulls to drive prices upwards before it is sold into.
From a positional standpoint, the market faced rejection from the 100-day EMA at 24,600 and opened the door for the 200-day EMA at 24,200. If the index manages to cross and sustain above 24,600, it could aim for resistance near 24,800 and above. On the other hand, if it shows sustained rejection, it could test 24,350 and then 24,200, forming a double bottom.
Sharma recommends positional traders to remain neutral and await clear signals before committing to a strategy. For intraday trade, he identified immediate support at 24,460, followed by 24,400 and 24,340. Below this, the Nifty index may test 24,280-24,200, but such a move is unlikely tomorrow, he added.
On the upside, immediate resistance is seen at 24,500, followed by attempts to reach 24,700 or higher, with intermediate resistances around 24,560, 24,600, 24,640, 24,680, and 24,720. He concluded that a short-covering rally is likely only above 24,560.
Stuck In A Tight Range
Analyst Dipak Takodara highlighted that the index remains boxed between support at 24,467–24,377 and near-term resistance around 24,600–24,650 (10-DMA). Above that, the next ceiling is 24,800–24,850 (20-DMA), and then 25,000–25,050 (50-DMA). A daily close above 25,100 would be the first sign that momentum is turning, according to him.
On the downside, 24,467–24,377 is the key support zone; a break below this band can slide the index to 24,200–24,164.
Key Levels To Watch:
• Support: 24,467–24,377; 24,200–24,150
• Resistance: 24,600–24,650 (10-DMA); 24,800–24,850 (20-DMA); 25,000–25,050 (50-DMA).
Takodara cautioned that if 24,467 gives way, he expects pressure to intensify toward 24,200–24,164.
Choppy Trade On Cards?
And Pradeep Carpenter said that a move above 24,700 could see an up-move towards 25,000. But a break below 24,340 could see selling pressure deepen towards 24,000–23,800.
For the Bank Nifty, if the index moves above 55,600, an upside to 56,500 is possible. And on the downside, a breach below 54,500 could lead to 53,000.
He highlighted that the market bias remained sideways to cautious. Carpenter expects choppy trading with stock-specific action until global data gives a clearer direction.
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