Sensex Gain 378 Points, Nifty at 24,698; Tomorrow Nifty Prediction
Tomorrow Nifty Prediction
Bulls Stage a Robust Comeback: What to Anticipate in the Market on August 21
Market Recap
The Indian stock market witnessed a remarkable resurgence on August 20, as the bulls made a notable comeback following recent sluggishness.
After a period of lackluster performance, the market saw a decisive upturn, with the Nifty crossing the 24,700 mark during intraday trading.
By the end of the session, the Sensex had surged by 378.18 points, or 0.47%, to close at 80,802.86. Meanwhile, the Nifty finished the day with a gain of 126.10 points, or 0.51%, at 24,698.80.
Sectoral Performance and Key Movers
Today’s trading highlighted a pronounced divergence in performance across various sectors. The Nifty’s top gainers included:
- SBI Life Insurance: This stock saw a notable rise, benefiting from strong investor sentiment in the insurance sector.
- HDFC Life: Alongside SBI Life, HDFC Life contributed significantly to the positive momentum in the financial services sector.
- Bajaj Finserv: This diversified financial services company experienced gains, reflecting optimism in the broader financial sector.
- Shriram Finance: As a major player in the finance and insurance sectors, Shriram Finance’s performance was a key contributor to the day’s gains.
- IndusInd Bank: With a positive performance, IndusInd Bank added to the bullish sentiment in the banking sector.
On the flip side, the stocks that faced losses included:
- ONGC: The oil and gas giant struggled, reflecting broader challenges in the energy sector.
- Bharti Airtel: The telecom sector heavyweight faced selling pressure, contributing to its underperformance.
- Adani Enterprises: This conglomerate saw a decline, which could be attributed to broader market corrections or sector-specific issues.
- Cipla: The pharmaceutical company experienced losses, possibly due to sector-specific or company-specific factors.
- Apollo Hospitals: The healthcare sector also faced some setbacks, with Apollo Hospitals among the losers.
In terms of sectoral indices, all except FMCG ended the day in the green. The Banking, Healthcare, IT, Metals, and Power sectors saw gains ranging from 0.5% to 1%, reflecting broad-based positive sentiment across various industries.
Stock Market Prediction for August 21
Looking ahead to August 21, several analysts offer insights into potential market movements based on current trends and technical indicators:
Aditya Gaggar, Director at Progressive Shares
Aditya Gaggar highlights that after an initial surge in the morning, the Nifty traded within a narrow range for the remainder of the day.
The index closed with a gain of 126.20 points at 24,698.85. The broader market showed varied performance, with midcaps outperforming smallcaps, which generally moved in sync with the benchmark index.
Gaggar notes that the bullish candle formation suggests that the Nifty has effectively filled its previous bearish gap and is now targeting the 24,870 level, a significant range breakout target. On the downside, support is shifting towards 24,590.
This indicates that while the short-term outlook remains positive, traders should monitor these key levels closely for potential shifts in market direction.
Vaishali Parekh, Prabhudas Lilladher
Vaishali Parekh expects the Nifty to target 24,800 next. She emphasizes that small and medium-sized stocks are actively supporting the benchmark index’s performance. Parekh also notes that the Sensex has regained strength, trading above the 20-day moving average (DMA) level of 80,200.
According to Parekh, immediate support levels for the market are at 80,000 and 24,400, while resistance levels are at 81,000 and 24,700.
This suggests that while the market is showing resilience, traders should be mindful of these support and resistance levels as they will play a crucial role in determining short-term price movements.
VK Vijaykumar, Geojit Financial Services
VK Vijaykumar provides a broader perspective, noting that the US markets have shown positive momentum with eight consecutive days of gains.
This trend could potentially continue and support a global market rally. Vijaykumar anticipates that the Federal Reserve will cut interest rates by 25 basis points in September, with two additional cuts expected later in the year.
This dovish stance from the Fed could provide a significant boost to equity markets worldwide, including India.
However, Vijaykumar also points out that Foreign Institutional Investors (FIIs) might continue their selling streak in India due to the relatively attractive valuations of other emerging markets.
This could exert pressure on large-cap financial stocks where FIIs have substantial stakes. Despite the negative sentiment currently surrounding the financial sector due to deposit struggles, it remains attractive from a valuation perspective. As market conditions improve, there could be a sharp rebound in financial stocks.
Rupak Dey, LKP Securities
Rupak Dey notes that the Nifty has successfully moved above the 24,700 level, remaining consistently above the 24,600-24,650 range.
This suggests that the uptrend is likely to continue as long as the Nifty maintains its position above these levels. A drop below 24,600 could reverse the current bullish trend, signaling potential caution for traders.
Dey projects that on the upside, the Nifty could move towards 24,840-24,860, indicating a continued positive outlook as long as the key support levels hold.
Final Remarks
The market’s strong performance today reflects a resurgence in investor confidence and positive sectoral movements.
As we approach August 21, the key levels to watch will be the support and resistance points outlined by analysts.
With a generally optimistic outlook driven by global cues and technical indicators, investors should stay informed and vigilant to capitalize on potential opportunities while managing risks effectively.
The evolving market dynamics and sector performances will be crucial in shaping the trading strategy for the coming days.
