The Indian stock market indices, the Sensex and Nifty 50, are expected to open higher on Tuesday, boosted by strong global market cues.
The trends on the Gift Nifty indicate a positive start for the Indian benchmark index. The Gift Nifty was trading at around 21,694, compared to the Nifty futures’ previous close of 21,570.
On January 8, domestic equity benchmarks fell nearly 1% due to weak global cues and profit booking.
The Sensex fell 670.93 points, or 0.93%, to close at 71,355.22, while the Nifty 50 dropped 197.80 points, or 0.91%, to 21,513.00.
The Nifty formed a long bear candle on the daily chart, indicating the formation of a bearish engulfing pattern (not a classical one).
The positive chart pattern of higher tops and bottoms remains intact, but the formation of a new lower top at 21,763 may be a warning sign for bulls at higher levels.
Shetti believes the Nifty 50’s short-term trend has reversed from its highs after a brief rally, and selling pressure appears to have begun to emerge near 21,750-21,850 levels. The next lower support to watch is 21,350 – the 20-day EMA.
Here’s what to expect from the Nifty 50 and Bank Nifty today.
Nifty 50 Predictions
The Nifty 50 index slipped into weakness, falling nearly 1% and breaking the 10-day EMA of 21,569.
“The Nifty 50 closed the day near its support at 21,500 and the short-term 14-day moving average, accompanied by a bearish engulfing candlestick pattern.” This indicates a change in market sentiment.
Bank Nifty Predictions:
The Bank Nifty index fell 709 points, or 1.5 percent, to 47,450 on December 8.
“The Bank Nifty bears staged a strong comeback, breaching the critical support level at 47,700 on a closing basis.” Selling pressure was evident throughout the banking sector, and a sustained move below 47,700 could result in further declines to the 47,000 level,” Shah stated.
He believes that in order for the Bank Nifty index to resume its upward trend, it must break through the key resistance at 48,300 and reach 50,000.
After reviewing the Open Interest (OI) data, the call side had the highest OI at 48,000, followed by the 48,500 strike price. On the put side, Mandar Bhojane, Equity Research Analyst at Choice Broking, reported that the highest OI was observed at the 47,000 strike price.
