Nifty Prediction Tomorrow: Cautious optimism is discernible, as the domestic equity market enters the new trading week. The Nifty 50 appears geared for a positive opening on August 18, Monday, as it registered modest gains last week; however, traders should stay cautious and keep an eye on critical support and resistance levels that will comprise the trend for the day.
Market sentiment improved slightly after stabilization of global indices with domestic investors gaining confidence from better-than-expected earnings in selective quarters. Analysts suggest that if Nifty manages to hold above its near-term support levels, the index may continue forging ahead toward testing higher resistance zones. Volatility, however, would remain, with traders adjusting positions before important global data releases and central bank commentary.
Support Levels to Monitor
Downside-wise, immediate support for Nifty is around 24,200-24,300. Sustaining above this level could cushion it for fresh buying. A stronger base is expected near 24,000, considered a make-or-break level for the short term. A breach below this zone may trigger profit booking and weaken momentum.
Resistance Levels to Monitor
On the upside, resistance for the index rests between 24,650 and 24,700. If a successful breakout occurs above this zone, it would lead Nifty towards 24,850, with the psychological 25,000 being the next big hurdle. Traders should take note that repeated failure to cross these levels will lead to a sideways consolidation.
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Technical View
According to chart patterns, the index is still trading within a definite range, but as long as it holds above 24,200, the bias is held slightly toward the bulls. Though momentum indicators are showing strength, the lack of robust buying interest indicates that a sharp rally is probably not around the corner.
What Traders Should Do
For intraday traders, buying on dips near the support levels could be a good strategy but must maintain strict stop-losses. Long-term investors, however, may continue to accumulate quality stocks in banking, IT, and infrastructure, which are expected to set the pace for recovery once the sentiment across the market improves.
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