The Persisted in a downtrend and closed at 19,310.15 last week as it breached its support at 19380. Last week, the market witnessed that the RSI support was not breached and the index bounced back to close 177 points higher from the day’s low at 19,434.55. However, this intraday bounce back couldn’t sustain beyond the next day. Last week, the support was breached, followed by a bounce back, only to breach the support of 19,380 again and even broke the week’s low of 19,253.60. Bears have been taking control for the past two weeks, with the Nifty falling from 19,517 to 19,310, a decline of 200 points.

On Monday 14th August 2023, Nifty opened at 19,383.95, reached a low of 19,253.6, a high of 19,482.75, and closed at 19,310.15. The Nifty lost 118.15 points from the week’s close. Bulls are finding it difficult to regain control of the uptrend. On 14th and 16th August 2023, bulls attempted to support the Nifty for an upside, but bears proved stronger in pulling it down.

By Friday, 18th August 2023, the Nifty was approaching the support of the 50DMA, which might be breached before finding support. The shorter DMAs are moving away from their negative bias, while the Nifty is also at a crucial support level of 19,300-19,250. Interestingly, has formed a bearish candle and is turning negative, suggesting a potential downside in the coming week, which might push the Nifty upwards. All the oscillators have turned negative for India VIX, indicating a downside in the coming days. Since Nifty and India VIX are inversely related (most of the time), Monday might mark a turning point for this week.

On Monday, 21st August 2023, the Nifty might fall to its support at 19,250 levels, a range of 50-60 points, and then back to 19,300 and above 19,375. On Friday, Nifty lost 55.15 points compared to the previous close, which is positive for the market to prepare for an upside move.
 
If the Nifty breaches and closes at or below 19,275-19,250, the market might experience selling pressure. On the other hand, if the Nifty sustains near 19,370 and above, the market could pave the way for an upward movement.
 
Disclaimer: All views and analyses expressed here are for reference only. Specific trading involves a substantial risk for traders/investors must consider all risk factors of their personal finance before trading. Must consult your own investment adviser before making any trade.