- Nifty index drops 114.9 points, ending August 11 at 19428.3.
- Nifty falls below 19500; RSM bearish crossover suggests a 19300 drop.
- Nifty breaks 44500-45000 level, signals weakness; BSE midcaps and small-caps also decline.
On August 11, the benchmark index of the Nifty declined for a second straight session, dropping 0.59% or 114.9 points to close at 19428.3.
The PSU Bank index dominated the market, with the bank and pharma indices declining by 1% each. The FMCG, metal, oil & gas, and auto sectors also experienced losses.
Dead Fishes are Found on Texas Beaches
The benchmark index of the Nifty continued to move mainly within its range, falling below 19500. The Relative Strength Index (RSI) shows a bearish crossover, and the index may drop to a level of 19300.
The next key support level is located at 43700, which might act as a buying zone for the bulls and possibly lead to a rebound.
Selling pressure on the domestic market persisted, as banking stocks continued to fall in response to the RBI’s liquidity-absorption policies. The growing worries about inflation further dampened the mood in the local market.
Markets are battling to maintain the upward bias amidst an increase in intraday volatile transactions as FII flows have become choppy this month.
On daily charts, the Nifty is holding a lower top formation and is trading below the 50-day SMA. Selling pressure and downward trending movements are likely to continue on the Nifty.
The critical support area is located between 19350 and 19290 on the downside, and the resistance is located between 19530 and 19500 on the upside.
On the downside, the Nifty has broken the 44500–45000 level, signaling weakness. A further decline over the coming trading sessions is predicted by the momentum indicator’s negative crossing. The BSE midcap and smallcap indices also experienced slight declines at the close.
