Nifty Outlook: The Nifty started improving the green mark on Tuesday. However, unlike the previous session, the index remained in a limited range most of the time. It could not maintain a psychological level of 25,000. The Nifty crossed it in Intrade for the second consecutive day, but finally fell back at 24,981 points with a gain of 103 points.
Now on Wednesday, August 20, how will the Nifty move, which level will be important, will understand it from experts. But, first let us know what happened in the market on Tuesday.
Auto sector booms strongly
If we look at the sector, the auto sector led the rally. The Nifty Auto Index reached a 10 -month high. It was strengthened by the expectations of cutting GST before Diwali. Oil and gas stocks showed a boom in the second consecutive session after the supplies were reduced. Consumer centric sector also climbed in the hope of GST reforms, good monsoon and festive expenses.
What will be special on Wednesday
Globally, focus will now be focused on Britain and Eurozone CPI print and on Wednesdays on the US Fed. On Wednesday, traders will also keep an eye on gaming stocks, as the Union Cabinet headed by Prime Minister Narendra Modi has approved the online gaming bill.
What is the opinion of experts
Analysts believe that positive trends in Nifty will continue even further. Siddharth Khemka of Motilal Oswal said that sector-Special Relief Measures, Government’s Policy Help and Strong Institutional Investment Flow Short Term can cause a boom.
Rajesh Bhosle of Angel One said that the market is easily handling the intraday decline. He advised to adopt a shopping strategy on by-on-report. According to him, the Nifty can reach 25,150, and if it crosses the level, it is possible to up to 25,670 further.
Nagraj Shetty of HDFC Securities says that the Nifty can go up to 25,300 levels in the short term, while immediate support is being seen at 24,850.
Indication of boom over 24,800
Nilesh Jain of Centrum Broking has described 24,850 as strong support. The resistance is around 25,020, which matches the 50-day moving average (50-DMA). If the Nifty crosses this level, the next speed can go from 25,100 to 25,300. He also added that the 21-day moving average (21-DMA) remains a significant support for the short term at the level of 24,770.
LKP Securities’s metaphor Day also shared the same levels. He said that as long as the Nifty remains above 24,800, the market will be positive. If the Nifty trades continuously over 25,000, the market strength may increase further.
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