Trade Setup Analysis: In the recent trading session on August 18, Nifty’s activity was characterized by consolidation, resulting in a slight downturn by the session’s close. However, notable developments and key levels suggest potential trading insights for investors seeking profitable opportunities.
Nifty’s Consolidation and Support-Resistance Dynamics
Amidst this market landscape, Nifty’s movement highlights an intriguing dynamic. Notably, the index seems to have found support around the crucial 19250 level, which is also closely aligned with its 50-day Exponential Moving Average (EMA). This support has the potential to play a significant role in influencing Nifty’s trajectory in the coming trading sessions. However, market experts point out that if this support is breached, Nifty could potentially trend towards the 19000 level in the lower range.
Technical Analysis by Rupak Dey
On the flip side, the 19500 level, positioned around the 21-day EMA, has emerged as a substantial resistance for Nifty. This resistance underscores the importance of this level as a significant hurdle that Nifty must surpass to demonstrate sustained upward momentum.
F&O Insights and Key Levels
Technical analysis provided by Rupak Dey, Senior Technical Analyst at LKP Securities, adds depth to this understanding. Dey notes that Nifty has been persistently trading below its 21-day EMA, signaling an ongoing weakness in the market sentiment. He emphasizes that the 19250 level holds as a critical support for Nifty, and any breach below this level could pave the way for further downside movement, potentially leading to the 19000 mark.
Meanwhile, the derivatives market presents a clearer picture of Nifty’s key levels. Support levels for Nifty include 19267, 19238, and 19192, with potential resistance points at 19358, 19387, and 19433. Correspondingly, Nifty Bank’s key support levels stand at 43718, 43651, and 43542, while potential resistances are expected at 43936, 44003, and 44112.