Markets in August
The direction of the market will also be determined by technical indicators, foreign investor buying and selling, GST reforms, and US market moves in the week beginning August 18.
Important dates for the stock market are August 21 and August 22. The market may experience a significant trend shift or momentum during the course of these two days, according to Wealthview Analytics Director Harshubh Shah.
Let’s see what might occur in the market this week.
Zone of Support: 24,538, 24,480, 24,443, 24,380, 24,331 and 24,142
Support is the point at which an index or share is kept from declining further. Because of increasing purchasing, prices don’t readily fall below these levels. At these levels, purchasing possibilities can present themselves.
Zone of Resistance: 24,670, 24,808, 24,850, 24,978, 25,083, and 25,322
Resistance is the point at which an index or share encounters barriers to rising. Increased sales are the cause of this. There may be new upward impetus if the Nifty crosses the resistance zone.
Factors that could influence the direction of the market.
Trump-Putin Talks: The market is anticipated to respond favorably to Friday’s talks between Russian President Vladimir Putin and US President Donald Trump about the Ukraine issue.
Trump stated that although the three-hour discussion was fruitful, no definitive deal had yet been reached. Putin, meanwhile, stated that resolving the situation in Ukraine requires addressing its underlying causes. For their next meeting, Putin has invited Trump to Moscow.
GST Reforms: Prime Minister Narendra Modi said on Independence Day that under GST 2.0, tax rates on everyday items will be reduced by Diwali. People may get the benefit of tax cuts by Diwali. This announcement could boost investor confidence.
US Market: The movement of Wall Street has an impact on other markets as well. This also has some effect on Indian markets.
- On Friday, the Dow Jones Index ended the day at 44,946, up 34.86 points, or 0.08%.
- At 6,449, the S&P 500 Index closed down 18.74 points, or 0.29%.
- The Nasdaq Composite ended the day at 21,623, down 0.40% or 87.69 points.
According to Santosh Meena, Research Head at Swastika Investmart, the market’s slow momentum is caused by foreign investors’ constant selling.
Around 24,700–24,800, which is close to the 20 and 50-day moving averages, is the Nifty’s immediate resistance. A short-covering rally can be triggered by a clear breach above this level. The Nifty may rise to 24,950, 25,080, and 25,225 as a result.
In the meantime, 24,350 is a critical support level, and the 100-day moving average’s 24,575 is the Nifty’s immediate support.
