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Nifty Prediction for 6th August 2024. Will Nifty Continue to fall?
Indian Benchmark Indices fell sharply, falling more than 2.5% each, amid global sell-off after the risk of Recession in the U.S increases. Along with that, Asian market continued to fall where the Nikkei fell more than 12% on Monday after BOJ hike the interest rate by 17bps. Nifty ended above the support of 24,000, suggesting a potential bounce from here.
On Monday, the Indian market crashed as the Global Indices saw a sharp decline after the fear of the recession in the U.S. captures the News headline, where the U.S. market fell by more than 2% and today the Asian market fell sharply following the global equity sell-off pressure and the worst happened with NIKKEI225 as it fell more than 12% today, which is the worst fall since 1987 (in terms of percentage) and worst in the history (on the basis of points).
Nifty fell 2.68% or 662.10 points on Monday, falling below the 23,900 level in Intraday, making a day low of 23,893.70 but somehow rising above the psychological level of 24,000 closing the day at 24,055.60.
India Vix rises more than 50% during the day marking a high of 23.15 but soon it cool off, settling at 20.37 on Monday, indicating a subsequent fear among investors about the equity market.
Nifty Metal leads the losers by falling 4.85% followed by Realty, Auto, CPSE, PSE, Oil & Gas, Energy, and commodities falling more than 3.5% each, while the FMCG sector became a pillar of strength during the last couple of falls in the Market, by holding at just -0.31% on Monday.
Looking at the Nifty 50 Stocks,
Top Gainers:
Top Losers:
Also Read: 7 Best Solar Energy Stocks in India for 2024. CAGR Growth of 30%
Nifty50 Prediction for 6th August 2024
On the hourly chart, Nifty can be seen below It is all the short-term and the long-term DEMA as it fell sharply on Monday, finding support at the 23,00 level and somehow managing to close the day above the support of the 24,000.
But Still, it is below its 100 and 200 DEMA on the hourly chart, indicating a strong bearish trend for the Short Term where the Nifty could slip down towards the 23,500 if fall below the 24,000 and the 23,800 level.
On the Daily frame, Nifty takes support at its 50 SMA but once crosses the 50 DEMA during the day but bounces back after forming a sneaky Double Bottom Pattern. So, as it is below its 20 and 30 DEMA on the daily chart, it could lead toward the 23,800 on Tuesday if falls from the 24,000 level.
Technical Indicators –
But as the RSI is trading dives into the oversold zone on the hourly chart, it is possible that the Nifty could rise on Tuesday, but again fall back to 24,000 as the global selling pressure continues, as the US Indices continue to fall on Monday by more than 2% each including Nasdaq, S&P 500, and Dow Jones (as of writing this Article).
MACD is also extending its bearish crossover along with the PCR which is currently below the possible Bullish Reversal mark of 0.50 – which means that the Nifty may rise a little bit in the short term.
Global Market
The U.S. market fell by more than 2% each on Monday trading session, led by the Giant Tech Stocks where the tech-heavy index, Nasdaq fell around 3.01%, Dow Jones fell 2.35%, and the S&P 500 fell 2.62% as of writing this article.
Along with this, the Asian market extended its bearish sessions, as the Top performer of the year, NIKKEI 225 fell more than 12% on Monday after the Bank of Japan raised the interest by 25bps which is the 2nd time in the last 17 years – confirming that the Index is in the bearish zone once again & looking ahead for some more sharp fall in the short term – ultimately putting pressure on the Indian Equity Market.
FIIs and the FPIs Activity
In the cash market, FIIs net sold shares worth Rs. 10,074 cr (data from NSE) which is the highest in the last 2 months in a single day.
In the Futures segment, they sold combined Futures worth Rs. 2,434 cr, where they sold Nifty Futures worth Rs. 806 cr and Bank Nifty Futures worth Rs. 1,576 cr. Along with this, the OI in the Futures segment is also decreasing and is at its lowest in the last 7 days.
This means the market may likely fall badly once again in the coming day as the Price is decreasing as well as the OI which means a Short Buildup in the Futures which is a negative sign for the Market.
What to Expect from Nifty on 6th August 2024
Nifty is likely to fall further on Tuesday with support at the 23,800 level and the 23,500 level. But for the very short term or even extended for Tuesday, the Nifty may trade in green after it takes support at the 24,000 level, forming a Hamer Candlestick on the hourly timeframe.
But for the Long Term, the bias is Strongly Negative after the global Sell-off in the Equity Market, after the fear of Recession in the US rose after worst than expected Jobs Data for July. Following this, the Nifty will likely extend its fall towards the 23,000 level in the coming days if there isn’t any good News for the market.
“Here are the trading levels for Nifty – 23,500 – 24,200“
Nifty Put and Call Open Interest Data
| Put OI (Open Interest) | Call OI (Open Interest) |
|---|---|
| 24,000 (56.55L) | 25,000 (1.03 Cr) |
| 23,500 (42.32L) | 24,800 (66.18L) |
| 24,100 (30.27L) | 24,500 (43.84L) |
Nifty50 Support and Resistance for 6th August 2024
| Nifty Support Levels | Nifty Resistance Levels |
|---|---|
| 23,800 | 24,200 |
| 23,700 | 24,400 |
| 23,500 | 24,500 |
Note:- For the Most Accurate Data you can revisit this Page after 11:00 AM (during Trading hours), so we can update the Trade Setup after analyzing the Market.
Happy Trading 🙂
