In response to positive global cues, the Indian stock market indices, the Sensex and Nifty 50, are anticipated to open higher on Friday, continuing their upward trend toward record highs.
The Indian benchmark index is off to a strong start, according to Gift Nifty’s trends. The Gift Nifty was trading at about 21,423, compared to the previous close of 21,353 for the Nifty futures.
The IT stocks drove the domestic benchmark indices to a record closing high on Thursday, as investor sentiment was positive.
The Nifty 50 increased by 256.35 points, or 1.23%, to close at 21,182.70, while the Sensex finished 929.60 points higher at 70,514.20.
On Wednesday, a long-legged doji-style candle pattern formed, and on Thursday, the Nifty 50 index appears to have seen a clear upward breakout.
“The noteworthy upward opening gap from the previous session is still there. It is reasonable to assume that Nifty is in the midst of a strong uptrend if the upside gap from Thursday is not filled in the next two to three trading sessions. In the midst of an uptrend, these unfilled critical upside gaps are typically regarded as bullish runaway gaps, according to HDFC Securities Senior Technical Research Analyst Nagaraj Shetti.
As per Shetti’s analysis, the market is still showing positive near-term trends. The 78.6% Fibonacci extension, or 21,550 levels, represent significant resistance that Nifty may be able to reach in the upcoming week, according to him.
What to anticipate from Bank Nifty and Nifty 50 today is as follows:
Forecasts for the Nifty 50
On December 14, there was a significant surge in the Nifty 50 index, which ended the day up 256 points.
Due to a rise in long positions relative to short trades, the index has broken out of its consolidation. As the index continues to trade comfortably above important moving averages, sentiment is still strong. Put writers have large positions at 21,000, which serves as support, according to Rupak De, Senior Technical Analyst at LKP Securities.
Going forward, he thinks there’s a chance the index will rise even higher, possibly to 21,400.
Forecasts for the Bank Nifty
On December 14, the Bank Nifty reached a record high of 47,944. The index finished at 47,732 after rising 640 points, or 1.36%.
With notable trading volumes, the Bank Nifty bulls were able to sustain their momentum and successfully break through the critical resistance level of 47,500. A strong support level has been identified at 47,000. Overall market sentiment is still bullish, and any brief declines are viewed as buying opportunities, according to Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
He believes that the Bank Nifty index will reach the 50,000 mark as a result of the continued momentum created by the active involvement of both private and PSU banks.
