Disclaimer: Information on this site is only for Education Purpose. Don't take our Articles as any Investment or Trading Advice, as we are not SEBI Registered.
Nifty Prediction for Monday, 12 August 2024
With very less volatility, Nifty traded flat after opening 1% gap up, indicating a possible Near Term resistance at the 24,400 level followed by 24,500. Also the FIIs are showing a Short Covering in the Futures segment, so till Nifty breaks above the 24,500 we may not go for any long options.
Despite Nifty opening more than 250 points higher on Friday from the previous closing, it still wasn’t able to conquer the psychological and strategically important level of 24,500 and traded sideways for the day, in a narrow range of just 50 points.
From the previous trading session, we can clearly see that 24,400 is quite a strong and important resistance level for Nifty, as the Index has also reacted from this level in the past, and following this, we can anticipate that the NIfty is having a tough time conquering this level.
Anyway, Nifty ended the previous session with a gain of over 250 points equivalent to 1.04% at 24,367.50 where the Auto, Realty, and IT stocks lead the market, as these indices rose over 1.5% each.
Also, the India Vix saw a sharp decline of more than 7.5% settling down at 15.34 in Friday’s session, and the Market Mood Index has fallen to 24.99 in the extreme Fear zone, which means the market has corrected enough to support the next rally.
Looking at the Nifty 50 Stocks,
Top Gainers: Eicher Motors, ONGC, Shriram Finance, Tech Mahindra, Tata Motors
Top Losers: BPCL, HDFC Life, Kotak Mahindra, Sun Pharma, Divi’s lab
Also Read: Best Books on the Indian Stock Market to Learn Indian Stock Market Better
Nifty50 Prediction for 12 August 2024
Nifty has formed an Ascending Triangle pattern on the hourly chart on the lower levels, which is kind of a trap, and the market may turn downwards after giving a false breakout above the 24,400 or 24,500 levels.
Although Nifty has seen some recovery from the lower levels (as it has already touched the bottom trendline of the Ascending Broadening Wedge Pattern, which we have talked about much earlier in our articles, it has formed on the Daily chart of Nifty50, which somewhere indicates indecision about future moves, as the market may travel either direction after the breakout of the trendlines, and for now, it must try to reach the upper trendline once again (as shown in the first image), there is not any signs of Bullish market so, till Nifty sustains above the 24,500 – stay calm.
Fiis and FPIs Activity
In the last trading session, FIIs turned Net Buyers in the cash segment with total bought shares worth Rs. Rs.407 Cr. In the Future Segment, FIIs also turned Bullish, as they bought Nifty Futures worth Rs.395Cr, where the OI in the Nifty Futures are at the lower levels in the last 20 days.
So, the Future is going higher, and the OI is decreasing which means “short Covering in the Market” which means the FIIs are booking profits and the trend for the short term may reverse, so till Nifty sustains above 24,500 level, we may not fully anticipate and Bullish Market.
What to Expect from Nifty on 12 August 2024
For Monday, 12 August 2024, we expect a Sideways market, with very little volatility, and the market may try to break above the 24,500 level and then fall back again. Anyway, For Nifty we have a strong nearby support at the 24,200 level and the possible resistance for Nifty at the 24,400 and 24,500 levels.
My view is Neutral, as there is no sign of any Bullish Market, and if the Market breaks above 24,500, then possibly it may be a trap and will fall back soon, as it formed an Ascending Trading Pattern on the Hourly chart, on the lower levels, with resistance at the 24,400.
But if it sustains above the 24,400 and then 24,500 level on Monday, then we can expect a rally toward the 25,000 once again this week. But for now, avoid any long positions for today – and you can go for stock-specific trading options.
“Here are the trading levels for Nifty – 24,200 – 24,500“
Nifty Put and Call Open Interest Data
| Put OI (Open Interest) | Call OI (Open Interest) |
|---|---|
| 24,000 (40.41L) | 25,000 (87.14L) |
| 24,300 (26.93L) | 24,400 (35.99L) |
| 24,200 (24.66L) | 24,500 (31.95L) |
Nifty50 Support and Resistance for 12 August 2024
| Nifty Support Levels | Nifty Resistance Levels |
|---|---|
| 24,200 | 24,400 |
| 24,000 | 24,500 |
| 23,800 | 24,600 |
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 🙂
