August 20, 2024 — Indian benchmark indices, Sensex and Nifty, are trading firmly in positive territory on Tuesday. As of 1:32 p.m., the BSE Sensex surged by 427.12 points, or 0.53%, to reach 80,851.80. Meanwhile, the Nifty 50 climbed 134.70 points, or 0.55%, to trade at 24,708.35.
Market activity is currently being driven by stock-specific and sector rotation strategies, with investors likely to engage in profit-taking at elevated levels. The banking sector, in particular, is shining, contributing significantly to the gains in the indices.
Investors are closely monitoring Federal Reserve Chair Jerome Powell’s upcoming speech at the Jackson Hole Economic Policy Symposium. Powell’s remarks are expected to offer critical insights into the Fed’s future interest rate policies, which could have significant implications for global markets.
From a technical perspective, the Nifty is displaying signs of fatigue, having failed to close with gains in the previous session. The daily Relative Strength Index (RSI) is hovering around 45, indicating underlying weakness. A decisive move below the 50-day moving average (DMA), which is near the 24,000 mark, could trigger a further decline, potentially pushing the index towards 23,800. Additionally, the India VIX, a measure of market volatility, has risen, suggesting that traders should brace for increased fluctuations in the market.
Overall, while the markets are trading higher today, caution is advised as volatility and technical indicators point to potential challenges ahead.
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