Markets face a cautious start to September as Nifty trades below its 100-day EMA.
Indian equity markets snapped a two-week streak of gains to end August lower. The Nifty index ended below its 20-day Moving Average last week, but strong macroeconomic data may provide some support to the markets as they begin September. The GIFT Nifty indicates a subdued start for benchmark indices on Monday.
SEBI-registered analysts shared the trade setup on Stocktwits.
Monday Trade Setup
Analyst Bharat Sharma of Stockace Financial Services highlighted that the Nifty index was unable to breach the 20-day Exponential Moving Average (EMA) on the upside. For Monday, the markets will react to the strong Q1 GDP print of 7.8%, he added.
Positionally, the Nifty index trades below the 100-day EMA, having breached the crucial support level at 24,500 with acute negative price action. The next level of support lies at the 200-day EMA, located at 24,250-24,200, with a trough support at 24,340. Until there is a positive conviction, the approach remains moderately negative.
For Monday’s session, Sharma pegged immediate support at 24,400, followed by subsequent supports at 24,340, 24,250, and 24,200, respectively. Immediate resistance is seen at 24,460, which, if breached, could lead to the next hurdle at the 20-day EMA (on a 15-minute timeframe) and support-resistance flip levels of 24,500. If successfully breached, the next resistance is seen at 24,580-24,600 levels with 50-day EMA (on 15-minute timeframe), which is also a previous peak resistance zone.
Sharma said that if the Nifty index crossed above 24,600, one could assume some relaxation on the upside for the further levels of 24,680-24,730 and higher. Overall, he advised caution despite the positive influence of the GDP data.
Levels To Watch
A&Y Market Research identified intraday Nifty resistance between 24,461 and 24,490, with support at 24,335 – 24,355. For Bank Nifty, they see resistance between 54,177 – 54,248 with support at 53,495 – 53,660.
Dipak Takodara noted that the Nifty index formed an inverted hammer on Friday and closed within the 24,500–24,350 support range. He said that the short-term momentum is weak with the price below all moving averages. Takodara advised watching 24,350 on the downside and 24,800 on the upside.
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