Trade Guide For Sensex, Nifty, Bank Nifty, BANKEX On August 22 After FOMC Minutes; Jackson Hole In Focus

Indian stock market is likely to open in green on Thursday tracking positive global cues. Stocks like Paytm, Zomato, RVNL, IREDA, BEML, and HUDCO among others will be in focus in the trading session. IRFC and JSPL are renowned stocks that will turn ex-dividend today. In the session, Nifty is expected to find support around 24,650 levels, while Bank Nifty is seen to hold its 50,300 mark.

In the early trade, Asian stocks traded higher after FOMC July meeting's minutes indicate that Federal Reserve could cut its key interest rates in September, which is what market is rooting for at the moment. Further, focus will be on Fed Chair Jerome Powell's speech in the Jackson Hole Symposium on Friday.

Overnight, Wall Street also witnessed gaining momentum, with Dow Jones Industrial Average surging 55 points to end at 40,890.49 followed by counterpart S&P 500 index that edged higher by 23.73 points to close at 5,620.85. The tech-heavy index Nasdaq Composite outperformed both the indices with gains of 102.05 points to close at 17,918.99.

In the previous session, Indian stock market made a dramatic recovery in the final hour of trading session. On August 21, benchmark Nifty 50 ended its fifth consecutive session in the green, closing with a gain of 71 points at 24,770. The Sensex, following a similar trajectory, closed 78 points higher at 80,881. The positive sentiment was largely driven by favourable global cues ahead of the Jackson Hole Economic Symposium.

Going ahead, technically, Shrikant Chouhan, Head Equity Research, Kotak Securities said, "on daily and intraday charts market is holding uptrend continuation formation, which is largely positive. We are of the view that, as long as it is trading above 24650/80600 the bullish texture is likely to continue on the higher side market could rally up to 24850-24900 / 81300-81600. On the flip side, dismissal of 24650/80600 may trigger one quick intraday correction till 20 day SMA (Simple Moving Average) or 24525-24500/80100-79800."

While Mandar Bhojane, Equity Research Analyst, at Choice Broking said that the Nifty faces immediate resistance near the 24,900 and 25,050 levels. On the downside, the 24,550 and 24,450 levels act as immediate support. If the index manages to close above the 24,800 level, it could potentially target the 24,900 and 25,050 levels in the upcoming days.

For August 22 trading session, Here's what Prabhudas Lilladher expects for key benchmarks:

Nifty: Prabhudas' note said, the index is witnessing a steady gradual rise and has closed above the important resistance zone of 24750 levels with bias and sentiment maintained positive anticipating for further rise in the coming days. The psychological near-term target of 25000 levels can be expected with 24400 zone maintained as the good support level as of now.

Sensex: For the 30-scrip benchmark, Prabhudas stated that the index has witnessed a steady rise in the last sessions, almost touching the 81000 zone, with bias maintained positive and with active participation witnessed from the broader markets as well in recent times. The index can carry on with the positive move for the next target of 81700 in the coming days, with 20 DMA levels of 80200 as the important support zone. The support for the day is seen at 80200 / 24650 levels while the resistance is seen at 81500 / 24900 levels.

Bank Nifty: On the major banking index, Prabhudas said, BankNifty once again has been finding tough resistance near the important 50EMA zone of 50800 levels and is moving within a narrow range for the past 2 sessions. As mentioned earlier, a decisive breach above the 51000 zone is necessary to establish conviction and thereafter anticipate for further upward movement in the coming days.

Bankex: On this sectoral index, the brokerage added, Bankex witnessed some profit booking slip towards the support zone of 57400 levels but recovered to end near the 57800 zone to restore the lost sentiment. The index needs to decisively move past the 20 DMA level of the 57920 zone to establish conviction for a further rise to the 58500 and 59000 levels. BankNifty would have the daily range of 50300-51200 levels, with Bankex support at 57200 and resistance at 58500 levels.

Accordingly, Shiju Koothupalakkal - Technical Analyst at Prabhudas Lilladher has recommended buying three stocks on August 22. They are:

- BUY EXIDE INDS cmp 508 Stop Loss 496 Target 532
- BUY TAJ GVK HOTELS cmp 325.25 Stop Loss 318 Target 340
- BUY HIMATSINGKA SEIDE cmp 171.74 Stop Loss 167 Target 180

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.