Now Reading: Nifty shows higher highs and lows, analysts see consolidation
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Nifty shows higher highs and lows, analysts see consolidation
The Nifty 50 index has gained 6.85% since hitting a low of 22,182.55 on April 2, forming a pattern of higher highs and higher lows that analysts say indicates a transition from…
The Nifty 50 index has gained 6.85% since hitting a low of 22,182.55 on April 2, forming a pattern of higher highs and higher lows that analysts say indicates a transition from a corrective phase to a constructive bullish structure. The index closed at 24,252 on Friday, August 21, after touching a high of 24,774.30 on August 3.
Livemint reports that this resilience has emerged despite rising crude prices, geopolitical tensions, and heavy foreign institutional investor (FII) selling. FIIs net sold shares worth Rs 1.09 trillion since April, while domestic institutional investors and retail liquidity have supported the market. Analysts cited by Livemint, including Hitesh Tailor of Choice Broking and Apurva Sheth of SAMCO Securities, noted the improving medium-term trend.
The Economic Times, citing Sudeep Shah of SBI Securities, offers a more cautious near-term view, stating the index is in a consolidation phase between 24,000 and 24,400. Shah pointed to flat moving averages and a low ADX of 12.80, suggesting a lack of strong directional conviction. He identified the 24,350-24,400 zone as a crucial hurdle and 24,050-24,000 as key support, with a decisive move beyond this range needed to determine the next trend.
Indian Opinion Analysis
Both outlets report a neutral technical picture, but Livemint foregrounds the bullish higher-highs-and-lows pattern over the medium term, emphasising resilience against headwinds. The Economic Times, in contrast, focuses on short-term consolidation and weak momentum indicators like the low ADX. Livemint underplays the possibility of further downside, while ET overstates the significance of the sideways phase. A measured reading suggests the medium-term structure is improving, but the near-term path remains uncertain, with the 24,000-24,400 range defining the next move. Watch for a weekly close beyond this band.
Coverage: 2 sources, 2 neutral
Sources (2): livemint.com (neutral report), economictimes.indiatimes.com (neutral report)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
