The Nifty 50 failed to see follow-through buying on August 8 due to selling pressure and ended at a three-month low, losing 233 points amid growing concerns over the impact of US tariffs on Indian exports. The index had already been trading below short- to medium-term moving averages and has now slipped below the 100-day EMA, accompanied by weakness in momentum indicators — signaling a bearish outlook. If the index breaks below the 200-day EMA (24,200) in the upcoming sessions, the 50-week EMA (24,000) could be the next possible level. On the higher side, however, the 24,500 mark is likely to act as a resistance, according to experts. 50 formed a bearish candle with a minor upper shadow on the daily charts (beside the previous day’s green candle), indicating weakness and selling pressure at the 100-day EMA. The index continued its correction for the sixth consecutive week — marking the longest losing streak since the COVID-19 pandemic in 2020. It maintained a lower highs–lower lows structure and traded near the lower band of the Bollinger Bands. Momentum indicators reflected continued weakness, with the RSI at 33.58, drifting toward the oversold zone, and MACD remained below the zero line, with continued weakness in the histogram. The Bank Nifty tested the 100-day EMA and formed a long bearish candle, resembling a bearish engulfing pattern on the daily timeframe — a sign that bears are in control. The banking index also remained below both short-term and medium-term moving averages. Momentum indicators showed bearish signals, with the MACD sustaining below the zero line with a downward bias in the histogram, and the RSI at 33.25, moving closer to the oversold area. This suggests further downside risk for the index.
