Today’s opening of the Nifty 50 and Sensex Indian stock market indices is probably going to be higher, tracking gains in global peers.
The trends observed on Gift Nifty suggest that the Indian benchmark index is off to a good start. In contrast to the previous close of 19,750 for the Nifty futures, the Gift Nifty was trading at about 19,800.
On Monday, the domestic equity market saw a lower close to the day. After closing at 65,655.15, the Sensex dropped 139.58 points, and the Nifty 50 finished 37.80 points (0.19%) lower at 19,694.00.
On the daily chart, the Nifty 50 created a tiny negative candle with a slight upper and lower shadow. From a technical perspective, this pattern suggests weakly biased range-bound market action.
The Nifty shows a slight degree of higher highs and lows compared to the daily timeframe chart. One could argue that the most recent swing high of 19,875 represents a new higher top in the sequence. Any decline from this point is anticipated to represent a higher low point in the sequence, according to HDFC Securities Technical Research Analyst Nagaraj Shetti.
He thinks the Nifty 50’s short-term trend is still range-bound. He went on to say that before there is an upside bounce from the lows, there may be some more consolidation or slight weakness in the near term.
What Nifty 50 and Bank Nifty can expect today is as follows:
Nifty OI information
According to Mandar Bhojane, Research Analyst at Choice Broking, after reviewing the Open Interest (OI) data, the call side exhibits the highest OI at 19,800, with 19,900 strike prices coming in second position. At the 19,600 strike price, the put side exhibits the highest OI.
It is still recommended to “buy on dips” and to have a bullish outlook on the index despite these factors. The advice given to traders is to concentrate on performing industries and use this stage to progressively add reputable names to their portfolios, Bhojane continued.
Nifty Fifty
With resistance at 19,800 and support at 19,650, the Nifty index is presently trading in an inside bar candle pattern during a broad consolidation phase. The index must break out of this range with sizable volumes on either side for there to be a clear trending move, according to Kunal Shah, Senior Technical and derivative analyst at LKP Securities.
Shah thinks that despite the consolidation, the overall outlook is still positive, with significant support located in the 19,550–19,500 range. He said that an advance above 19,850 is expected to create space for the index to hit all-time high levels.
Nifty Bank
On November 20, the Bank Nifty also stabilized and finished unchanged at 43,585.
On the daily chart, the Bank Nifty index created a doji candle, indicating indecision at the moment. At 44,000, the index faces strong resistance, with the call side holding the majority of open interest. Sharp moves by short-covering investors are expected to follow a breakthrough above this level, according to Shah.
On the other hand, he thinks that 43,300 represents the lower-end support, and a breach of this level could open the door for additional downside movement towards the 42,800 level.
The market sentiment is in a delicate balance, and major moves could occur based on important resistance and support levels, according to the data, Shah continued.
