Stock Market Prediction for Monday, August 24: Indian equity markets are likely to see a cautious start to the week after ending the previous session flat to marginally higher following a period of sharp intraday volatility, with technical analysts expecting that the benchmark indices – Sensex and Nifty – to remain range-bound but with a mildly positive bias.
The 30-share BSE Sensex continues to face resistance near its 200-day EMA, while the NSE Nifty 50 has shown signs of recovery after finding support around the crucial 24,000 level.
In a largely range-bound trade on Friday, Sensex ended almost unchanged from the previous close at 77,540.83, up 3.11 points. During the day, it hit a high of 77,725.67 and a low of 77,445.86, gyrating 279.81 points.
The Nifty also ended flat, up 20.15 points, or 0.08 per cent, at 24,252.
Stock Market Prediction for Monday, August 24 by experts
Sensex Prediction for Monday, August 24
According to Hitesh Tailor, Technical Research Analyst at Choice Equity Broking Private Limited, Sensex remained largely range-bound during Friday’s session despite opening on a strong note.
“The index witnessed a sharp gap-up opening of around 163 points at 77,701.01 and touched an intraday high of 77,725.67. However, the initial momentum failed to sustain, with the index slipping to an intraday low of 77,445.86 before consolidating within a narrow range for the remainder of the session. Sensex eventually settled at 77,540.83, ending the day with marginal gains of 3.11 points,” he stated.
From a technical perspective, Tailor said the index continues to trade around its 50-Day EMA but remains below the crucial 200-Day EMA, keeping the broader trend cautious. “RSI at 49.00 indicates subdued momentum, with no clear directional strength at present,” the analyst said.
For Gupta, immediate support is placed at 77,000–77,380, while 77,720–78,000 remains the key resistance zone. He stated that the overall bias remains sideways to cautious, as Sensex continues to consolidate near the 50-Day EMA while facing resistance around the 200-Day EMA. “A sustained move above the 77,720–78,000 zone would improve the short-term outlook, while continued holding above the 77,000–77,380 support zone would keep the consolidation structure intact,” he added.
Sector-wise, buying interest was witnessed across Financial Services, Private Banks, Bankex, Consumer Durables, Insurance, Telecommunications and Metals, while FMCG, Auto, Information Technology and Healthcare remained under pressure. The mixed sectoral performance kept the benchmark index largely confined to a range, he stated.
On the global front, ongoing US-Iran geopolitical tensions and elevated crude oil prices continue to remain key risk factors for global markets, including Indian equities, and could keep volatility elevated.
Nifty Prediction for Monday, August 24
According to Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities, Nifty continued to consolidate its recovery, forming a higher low for the second consecutive session and sustaining above its 50-DEMA near 24,190, a constructive sign after the recent corrective phase.
“The immediate focus is now on 24,300, where a sustained breakout could trigger further short covering and open the way towards 24,533. On the downside, 24,190–24,140 remains the immediate support zone, while 24,040–24,000 forms the broader base,” he believes.
He further stated the momentum is gradually improving, with the RSI recovering to 46.13 from recent lows, though it remains below its RSI average of 54, indicating that the recovery is still developing and requires stronger participation to gain momentum.
“India VIX at 11.20 remains historically low, suggesting limited volatility expectations and supporting a relatively stable trading environment unless a key technical level is decisively breached,” he noted.
From a derivatives perspective, Dhameja said Put OI around 24,200, followed by 24,000, continues to provide a support cushion, while significant Call OI at 24,300 and 24,500 may initially restrict the upside. A decisive move above 24,300 could force call writers to unwind positions, strengthening the recovery.
Overall, Dhameja stated the bias remains cautiously constructive, with a buy-on-dips approach preferred till the Nifty trades above 24,190. “A sustained breakout above 24,300 would be the key confirmation for an extended recovery,” the analyst added.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said the Nifty sustained gains for the second consecutive session on Friday and closed the day marginally higher by 20 points. “After a sharp upmove of Thursday, the market seems to have consolidated with range-bound movement on Friday. The opening upside gap of Thursday remains unfilled. This is positive indication and signals short term bottom reversal for the Nifty at the key trendline support of 24000 levels,” he stated.
-
Nifty daily chart – Friday, August 21
On the weekly chart, Shetti said Nifty formed a small negative candle with long lower shadow, which signals a formation of bullish hammer type candle pattern, not a classical one. “Larger degree bullish chart pattern of higher tops and bottoms is intact on the weekly chart, and it seems like a new higher bottom formation this week at 24025,” the analyst added.
“The underlying trend of Nifty is positive, and there is a chance of further upside towards 24500-24600 levels by next week. Immediate support is placed at 24100,” Shetti 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.)
