Domestic equity benchmarks are likely to remain range-bound with a cautious undertone on Monday, August 10, after Sensex and Nifty ended lower on Friday following two days of gains, dragged down by bank, financial stocks, and rising crude oil prices.
Technical analysts expect volatility to persist on Monday, with the Nifty finding support around 24,400-24,500 and facing resistance near 24,700-24,760. For the Sensex, the key support zone is seen at 77,900-78,100, while 78,800-79,000 is likely to act as an immediate hurdle.
Sensex, Nifty close on Friday, August 7
The 50-share NSE Nifty dipped 65.35 points, or 0.27 per cent, to end at 24,570.65. Intra-day, it declined 113.25 points, or 0.45 per cent, to 24,522.75.
The Nifty 50 ended Friday’s session at 24,570.65, down 65.35 points or 0.27%, as the index continued to consolidate within a well-defined range for the week, said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.
Dhameja further stated, “Despite the lack of directional momentum, the broader technical structure remains stable, with the index comfortably sustaining above the 200-DEMA (Exponential Moving Average) and the crucial 24,500 psychological support, reflecting resilience at lower levels.”
On the weekly timeframe, Dhemja said the index has formed a Doji candlestick, highlighting market indecision after a period of consolidation. “The next directional move is likely to be determined by a decisive breakout above or below the high and low of the weekly Doji,” he added.
“Momentum remains healthy, with the RSI at 59.89, holding above the neutral 50 mark and indicating that underlying strength continues to persist,” Dhemja noted.
From a derivatives perspective, the option chain reflects a balanced undertone. “Maximum Put Open Interest is concentrated at the 24,600 strike, followed by 24,500, reinforcing a strong support base near current levels. Meanwhile, maximum Call Open Interest is placed at the 24,600 strike, followed by 24,700, indicating that the 24,400-24,700 zone continues to witness active positioning by market participants, keeping the index confined within a defined trading range. The Put-Call Ratio (PCR) stands at 0.73, suggesting balanced positioning with a slightly cautious bias,” he added.
Technically, 24,500-24,400 remains the immediate support zone, supported by the 200-DEMA and the psychological significance of 24,500, making it a key demand area.
“On the upside, 24,700-24,760 remains the immediate resistance band. A decisive breakout beyond either side of this range is likely to provide the next directional trigger. Until then, the prevailing structure continues to favour a buy-on-dips approach while the index sustains above the critical support zone,” Dhemja said.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said the Nifty has formed a triangle-type pattern on the daily chart and appears to be attempting a downside breakout.
“This could be watched closely for a false downside breakout, if follow-through weakness doesn’t happen in coming sessions,” he said.
Shetti further stated, “Choppy movement continued in the market for the fourth consecutive sessions on Friday and Nifty closed the day lower by 65 points amidst range bound action.”
“The underlying trend of Nifty remains choppy with weak bias,” Shetti said.
He highlighted the Nifty is above the crucial support of previous upside breakout area around 24400-24300 levels as per change in polarity. According to him, any weakness down to this support could be a buying opportunity.
Immediate resistance is placed for a trend reversal is at 24700,” Shetti added.
The BSE Sensex ended Friday’s session at 78,499.17, down 455.59 points or 0.58%, as investors booked profits following the recent rally.
“Sensex opened at 78,516.08, touched an intraday high of 78,757.40, but failed to sustain higher levels as selling pressure persisted through the session. The index slipped to an intraday low of 78,377.07 before settling at 78,499.17,” said Hitesh Tailor, Technical Research Analyst at Choice Equity Broking.
“Global sentiment remained cautious amid uncertainty surrounding U.S. tariff-related developments and lingering geopolitical tensions in the Middle East, which kept investors risk-averse ahead of key global economic data releases,” he added.
On the daily chart, Tailor said Sensex formed a bearish candlestick, reflecting near-term profit booking. However, the index continues to trade above its 20-Day, 50-Day, and 100-Day EMA, indicating that the broader trend remains positive.
“The RSI stands at 58.68, suggesting momentum continues to favour the bulls despite the day’s weakness. Immediate support is placed at 77,900–78,100, while 78,800–79,000 remains the immediate resistance zone,” he added.
“The broader technical setup continues to remain sideways to bullish,” Tailor said, adding that intermittent profit booking could keep the index range-bound in the near term.
He further said the prevailing trend continues to favour a buy-on-dips approach as long as Sensex holds above its key support zone. “A sustained move above the immediate resistance band could pave the way for a fresh leg of upside,” Tailor added.
(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
