Nifty Closed at 24,770.20; Nifty Prediction for Tomorrow

Nifty Prediction for Tomorrow

Nifty Closes Above 24,750: What to Expect on August 22

Market Summary and Sector Performance:

On August 21, Indian stock markets saw a day of gains amidst fluctuating conditions. The Nifty index managed to close above the crucial 24,750 level, ending the trading session at 24,770.20 with a gain of 71.35 points.

This upward movement is attributed to sector rotation, which has been instrumental in keeping the Nifty at elevated levels.

Despite the positive close, a negative divergence is evident on the momentum indicators, suggesting that the pace of the uptrend might slow down in the near term.

Top Gain and Decline Highlights:

• Top Performers: The top gainers on the Nifty index included Divis Labs, Titan Company, SBI Life Insurance, Hindalco Industries, and Grasim Industries. These stocks exhibited strong performance, contributing significantly to the overall index gain.
• Biggest Decliners: On the downside, Tech Mahindra, UltraTech Cement, Tata Steel, Power Grid Corporation, and ONGC were the biggest losers. These stocks saw declines that impacted the index negatively.
• Sectoral Performance: The sectoral indices painted a mixed picture. The Realty index fell by 1%, reflecting concerns in the real estate sector. The Bank index also declined, albeit modestly, by 0.3%. In contrast, sectors such as FMCG, Healthcare, Metal, Telecom, and Media saw gains ranging between 0.5% and 1%. Notably, the BSE Midcap index rose by 0.4%, and the Smallcap index gained approximately 1%, indicating broader market strength beyond the large-cap stocks.

Insights for August 22:

Aditya Gaggar’s Analysis:

Aditya Gaggar, Director at Progressive Shares, provided a detailed assessment of the market dynamics. He highlighted that after an initial drop in early trading, the Nifty index gradually regained momentum.

By the end of the session, the index closed at 24,770.20, marking a gain of 71.35 points. Gaggar noted that the FMCG sector was the biggest gainer of the day, with an increase of over 1.30%. Media and Pharma sectors also contributed positively, with gains of 1.20% and 0.91%, respectively.

On the flip side, the Realty sector faced the most significant decline, dropping by 1.31%. This sector’s poor performance is a concern and could impact the broader market sentiment.

Gaggar remains cautious but optimistic, noting that the Nifty is heading towards the 24,870 target, which represents a significant range breakout.

Support is anticipated around the 24,640 level. Gaggar’s outlook suggests that while the market has shown resilience, investors should be prepared for potential volatility and adjustments.

Jatin Gedia’s Perspective:

Jatin Gedia of Sharekhan offered a nuanced view on the market’s trajectory. He observed that sector rotation is a key factor supporting the Nifty’s elevated levels.

Despite opening the day on a flat note, the index experienced a positive surge, closing with a gain of around 71 points. Gedia pointed out that the Nifty is approaching the 24,830 – 24,900 zone, a critical range for the index.

However, he also highlighted a negative divergence observed in the momentum indicators. This divergence suggests that while the index is currently in an uptrend, the upward momentum might be losing strength. As a result, Gedia expects potential intraday pullbacks on August 22.

For traders and investors, key levels to watch include immediate support at 24,550 – 24,500 and resistance between 24,900 and 24,960.

Gedia’s analysis implies that while the market remains strong, caution is advised due to the potential for short-term fluctuations.

Nagaraj Shetti’s Forecast:

Nagaraj Shetti from HDFC Securities provided an optimistic yet cautious outlook. Shetti observed that the Nifty index exhibited continued positive momentum, with range-bound action marking the trading day.

He noted that a positive candle formed on the daily chart, indicating a short-term bullish trend. Shetti’s analysis suggests that the Nifty’s short-term trend remains positive, with the potential to move towards levels of 24,960 and even 25,100 over the next week.

Immediate support is expected around 24,650, which is a crucial level to watch for any signs of weakness. Shetti’s forecast highlights that while the overall trend is favorable, the market’s ability to sustain higher levels will depend on how it handles potential support levels and market dynamics in the coming days.

Final Remarks:

As we look ahead to August 22, the market’s direction will be influenced by several factors, including sector performance, momentum indicators, and key support and resistance levels.

The Nifty index has shown resilience and strength, supported by sector rotation and broad-based gains. However, the presence of a negative divergence in momentum indicators suggests that investors should be prepared for possible short-term corrections or pullbacks.

Investors should closely monitor the support levels around 24,550 – 24,500 and resistance between 24,900 and 24,960.

Keeping an eye on sector performance and broader market trends will be crucial for making informed decisions. As always, it is advisable to consult with certified financial experts before making any investment decisions.

Disclaimer: The views expressed in this analysis are those of individual experts and do not necessarily reflect the views of the website or its management. Users are encouraged to seek advice from certified financial advisors before making any investment choices.