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Nifty Prediction for Monday, 05th August 2024.
Nifty fell below its support level of 24,800 and likely to continue its fall on Monday, as the global market is falling sharply after the weak US jobs data, increasing the risk of recession in the U.S. and the Bank of Japan rises the Interest Rates for the 2nd time in 17 Years.
Nifty50 opened gap down on Friday after making a record high on the previous day of 25,078.30 as the global market fell sharply after the chances of a Recession in the U.S. rose, where the US market fell more than 2% and also the Asian Market fell sharply led by the Nikkie after the Bank of Japan rises the interest rates.
The broader Index of the Indian Market traded in red after opening the gap down where the Nifty traded lower by 1.17% (closing at 24,17.70 on Friday) and the BSE Sensex by 1.08% respectively.
On the sectoral side, Nifty Realty leads the losers where it fell by 3.53% followed by Metal, Auto, and IT which fell by more than 2.5% each, along with Commodities, Energy, PSE, and Oil & Gas which fell by more than 1% each. The only sector that traded in green was the Nifty Healthcare which is up by 0.36% showing some strength in the bearish market.
Looking at the Nifty 50 Stocks,
Top Gainers: Divi’s lab, HDFC Bank, Dr Reddy’s, Sun Pharma, Kotak Mahindra Bank
Top Losers: Eicher Motors, Maruti Suzuki, Tata Motors DVR, Tata Motors, Hindalco
Also Read: IRB Infra Share Price Target for 2025 – 2030. Price Forecast by Experts
Nifty50 Prediction for 05th August 2024
On Last Friday, Nifty50 along with the broader Index fell after opening the gap down following the global Stock Market Sell-off as the fear of Recession in the United States took the stream, where the Nifty fell by more than 1% diving sharply after reaching a record high on the previous day.
On the technical chart, Nifty is trading below its support level of 24,800, which is a key support level for Nifty50 in the near term, and as Nifty breaks this support level and sustains below it, we may see a further fall in the market as the global market is trading in Red, after weak US Jobs Data, heightening the discussion of US Economy Slowdown – ultimately putting pressure on the equity market.
Further below, Nifty has immediate support at the 24,588 level at the 20 DEMA, followed by 24,500 (a psychological mark) and 24,400 (previously acting as a major support for Nifty50) levels.
Technical Indicators, including the RSI and the MACD, gave a negative signal for the market on Monday, as the RSI gave a negative divergence, falling sharply from the overbought zone on the daily chart, and the MACD also gave a negative crossover as if falls after touching the signal line on Friday – indicating that the market will likely to fall further on Monday, 5th August 2024.
FIIs and FPIs Activity
In the cash market, FIIs turned net sellers on Friday as they sold shares worth Rs.3,310 crores (data from NSE showed).
In the Futures segment, FIIs are mildly bearish as they sold Nifty Futures worth Rs.896 crores, compared to the previous day’s buying of Rs.1,40 crores, and on the other indices Futures, they are not notably bearish.
The India Vix rises more than 10% to 14.32 on Friday, indicating fear among investors.
Important: Major Indices of the US stock market fell sharply late-night on Friday, where the Tech Heavy Nasdaq fell 2.43% followed by the S&P 500 and the Dow Jones falling 1.84% and 1.87% respectively, on the weak US Jobs Data, and the Recession and the Too Slow execution of the Interest Rates Cut by the US Federal Reserve puts more pressure on the Equity Market.
Following this, the European and the Asian Markets continued their meltdown on Friday, where the larger participants where the DAX & HANG SENG fell by more than 2%, the FTSE & CAC fell by around 1.5% each, and the NIKKEI fell by more than 5% as the Bank of Japan hikes the interest rates for the 2nd time in the 17 years.
What to Expect from Nifty on 05th August 2024
On Monday, 5th August 2024, Nifty will likely continue falling, as one of the major nearby support (24,800) of Nifty is breached and the market sustains below that level in the last trading session, along with the RSI is falling sharply, and the MACD is giving a Negative crossover on the Daily Timeframe.
It indicates that the Nifty might open gap down on Monday, following the bearish trend, with the nearby support at 24,600 followed by 24,500 and 24,400 levels, and if it continues to fall further then we have the strongest support at 24,000 as well as the highest Put OI of 60.09 lakhs.
But, a reversal above the 24,800 level can again turn the sentiment bullish, taking Nifty towards the psychological level of 25,000 once again. But if falls from the 24,800 facing resistance then we may see a blood bath on Dalal Street and Nifty could lead towards the 24,200 and 24,000 levels in the coming sessions.
For the short term, stay cautious and avoid building any long positions, as the market could slip amid a global sell-off after the fear of recession in the U.S.
“Here are the trading levels for Nifty – 22,050 – 22,325“
Nifty Put and Call Open Interest Data
| Put OI (Open Interest) | Call OI (Open Interest) |
|---|---|
| 24,000 (60.09L) | 25,000 (77.43L) |
| 24,100 (46.58L) | 25,200 (55.42L) |
| 24,500 (33.49L) | 24,800 (52.99L) |
Nifty50 Support and Resistance for 05th August 2024
| Nifty Support Levels | Nifty Resistance Levels |
|---|---|
| 24,600 | 24,800 |
| 24,500 | 25,000 |
| 24,450 – 24,400 | 25,200 |
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 🙂
