StockEdge Morning Market Analysis - 26th August
The Nifty gained 11 points on Friday to close at 24,823. Last week, markets traded with a positive bias, gradually inching towards the mentioned target of 24,850. It made a series of higher highs. India VIX dipped to the 13 level. The small-cap index gained well, showing broader market strength throughout.
Technically, on Friday, the 24,850 level was tested, with the index closing near that zone. The technical indicators are quite positive without any signs of being overbought. Once this level is breached, the index could test the lifetime highs of 25,100. The 24,550-24,600 zone is the major support level. A pullback to this level is likely at any time, which could present a buying opportunity.
Bank Nifty, after a long period of consolidation, has given a strong weekly closing. The real momentum is yet to kick in for this index, and it will play a key role in overall market performance. The 51,150 level is the gap resistance. Once this is cleared on a closing basis, we will see the index gain the required momentum.
US Indices: The DOW is back close to its previous highs, which is encouraging. We will keep a close watch on how it behaves at these levels. A positive factor is that the Dollar Index has dipped further to 100, and it seems poised to drop below this mark, which could provide a positive boost to equities and metal stocks.
To conclude: 24,850 should be cleared soon, paving the way for lifetime highs.
Nifty
- Support: 24,600, 24,550
- Resistance: 24,850, 25,000
Bank Nifty
- Support: 50,600, 50,450
- Resistance: 51,025, 51,300
Download the app today and take control of your investments like never before!