Stock Market Prediction Today, August 21: Indian equity benchmark indices are likely to trade with a positive bias as trading resumes on Friday (August 21), after the Nifty and Sensex staged a strong recovery in the previous session, led by IT, FMCG, Realty and Banking stocks. However, technical analysts expect the benchmarks to remain range-bound in the near term, with an underlying buy-on-dips sentiment.
Sensex, Nifty at close on Thursday
Snapping its seven-day falling streak, the 50-share NSE Nifty rose by 153.55 points, or 0.64 per cent, to close at 24,231.85.
Stock Market Prediction Today, August 21
Technical analysts expect both the Nifty 50 and the BSE Sensex to trade within broad consolidation ranges on Friday and advise following a buy-on-dip strategy.
Nifty Prediction today, August 21
Hitesh Tailor, Technical Research Analyst at Choice Broking, stated that Indian indices witnessed on positive start on Thursday with Nifty witnessing a gap-up opening and initially moving sideways during the first half of the session. Subsequently, it advanced to an intraday high of 24,265.15 and later consolidated and closed at 24,231.85.
On the daily chart, he stated Nifty has formed a Doji-like candlestick, indicating indecision after the recent weakness and suggesting that the index is yet to establish a clear directional trend.
“Immediate support is placed at 24,000–24,050, while resistance is seen at 24,270–24,350,” Tailor said.
He added that the 50% Fibonacci retracement level at 24,190 has emerged as an important reference point. Sustaining above this level could support the recovery attempt, while 24,000 remains a crucial psychological level on the downside.
From a technical perspective, Gupta stated the RSI stands at 48.33 against its RSI average of 55.27, indicating that momentum has improved from lower levels but remains below the neutral midpoint.
Tailor sees immediate support at 24,180, followed by 24,050 and 24,000. “On the upside, 24,270 is the immediate hurdle, followed by 24,300, which coincides with the 50-Day EMA, and then 24,500,” he added.
From the derivatives perspective, Tailor said, “Put OI concentration around 24,200–24,000 indicates support at lower levels, while Call OI concentration around 24,300–24,500 suggests supply in the higher zone. With PCR at 1.10, the derivatives setup has improved, but a sustained move above 24,300 would be important for stronger bullish confirmation.”
Bajaj Broking Research said the index has formed a high wave candle with a higher high and a higher low and a bullish gap below its base (24,172-24,184) highlighting pullback from oversold territory.
“The index in the process managed to break the sequence of lower high and lower high and closed above the 50 days EMA signaling a pause in the last two weeks corrective decline,” it noted.
“Going ahead, a follow through strength above Thursday’s high 24,265 will signal extension of the pullback towards 23,400 levels in the coming sessions. While failure to move above Thursday’s high will signal consolidation in the range of 24,000-24,250,” the brokerage stated.
Overall, the index is expected to extend the recent consolidation and trade in the broad range of 24,000-24,600 in the coming sessions “The daily stochastic is rebounding from the oversold territory and has generated a buy signal moving above its three periods average thus supports the continuation of the pullback in the coming sessions,” the brokerage added.
The brokerage sees Nifty has short-term support placed at 24,000-23,800 levels being the confluence of the trendline support joining last 4 months lows, previous major gap area and 61.8% retracement of previous up move from 23,606 to 24,774.
Sensex Prediction today, August 21
The BSE Sensex also staged a strong recovery on Thursday, closing at 77,537.72, up 628.04 points (+0.82%). The index opened at 77,468.45, marking a sharp 558.77-point gap-up, and maintained its positive momentum through most of the session, said Sachin Gupta, VP – Technical Research, Choice Equity Broking.
“After touching an intraday low of 77,371.00, the benchmark recovered and moved to a high of 77,611.11, closing near the upper end of the day’s range. The rebound came after three consecutive sessions of decline, signalling a return of buying interest at lower levels,” he said.
According to Gupta, the price action showed that the Sensex successfully used the previous session’s resistance area near 77,400 as an intraday support zone after the gap-up opening.
“The immediate support is now placed at 77,000–77,365, while 77,720–78,000 remains the key resistance zone,” he said, adding that the index is likely to remain range-bound in the near term, with the immediate focus on whether it can sustain above the recent recovery levels.
“The broader market bias remains sideways, with a move beyond the key range boundaries likely to determine the next directional trend,” the analyst added.
From a technical perspective, Gupta stated the Sensex formed a bullish green candle after three consecutive red candles, indicating a meaningful recovery in sentiment.
“The index opened sharply higher and found support near the previous day’s resistance around 77,400, before closing above its 50-Day EMA, which improves the short-term structure. The 100-Day EMA is now the nearest important resistance, and a sustained move above it could further strengthen the recovery. On the derivatives front, being the expiry day, 77,400 PE writers and 77,600 CE writers remained active, keeping the index largely within this zone. The RSI stands at 48.97, recovering but still below the neutral 50 mark, while its RSI-based moving average is around 54.64, indicating that momentum has improved but remains below its average trend. The PCR at 1.13 reflects relatively supportive positioning,” he said.
Further, Gupta stated the broader outlook remains sideways, although today’s strong rebound has provided some relief after the recent corrective phase.
“Sustaining above the 77,000–77,365 support zone will be important for preserving the recovery, while a decisive breakout above 77,720–78,000 could open the door for further upside. However, failure to cross the 100-Day EMA and the immediate resistance zone may keep the Sensex in consolidation. For now, the recovery remains constructive, but stronger confirmation will be required for the index to establish a sustained bullish trend,” Gupta concluded.
(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.)
