August 16, 2023 / 08:59 AM IST
Sensex Today | Deven Mehata, Equity Research Analyst at Choice Broking:
The benchmark Sensex and Nifty indices are expected to open marginally lower on August 16 as trends in the GIFT Nifty indicate a negative start for the broader index with a loss of 82 points.
Inflation in July hit 7.4% YoY, the highest level since April 2022, according to highly key statistics that was announced on Monday post-market. Food inflation caused a significant increase.
The charts indicate that the Nifty may get support at 19,380, followed by 19,320 and 19,250. If the index advances, 19,450 would be the initial key resistance level to watch out for, followed by 19,520 and 19,550.
Foreign institutional investors (FII) sold shares worth Rs 2,324.23 crore, while domestic institutional investors (DII) purchased Rs 1,460.90 crore worth of stocks on August 14, provisional data from the National Stock Exchange (NSE) showed.
It will be difficult for the markets to sustain at higher levels as we can witness continued selling pressure from FII’s. On daily charts, the Bank Nifty has indicated a breakdown of a head and shoulder pattern, indicating that banking stocks may see additional selling pressure. The 19250 level, which is a strong support and is also close to 50 Day EMA levels, can be used as a stop loss for traders holding long positions in the Nifty.
