Indian stock market today: Amid dovish US Federal Reserve policy, positive global market cues are expected to lead the Indian equity market indices, the Sensex and Nifty 50, to open strongly higher on Thursday.
For the third consecutive meeting, the US Federal Reserve kept its benchmark interest rates unchanged on Wednesday, citing a decline in inflation over the previous year. The Federal Open Market Committee, chaired by Fed Chair Jerome Powell, now projects three rate reductions for 2019.
The Indian benchmark index is off to a strong start, according to Gift Nifty’s trends. Compared to the Nifty futures’ previous close of 21,035, the Gift Nifty was trading at about 21,222.
Wednesday’s modest gains for the domestic equity indices came from recovering intraday losses; the benchmark Nifty 50 index remained above the 19,900 mark.
At 69,584.60, the 30-share Sensex closed 33.57 points, or 0.05%, higher, while the NSE Nifty 50 closed 19.95 points, or 0.1%, higher, at 20,926.35.
With a long lower shadow and identical open and close, Nifty 50 resembled a tiny candle.
Technically speaking, this pattern suggests the formation of a candle pattern similar to a doji. Such doji formations following weakness typically indicate an upside reversal following confirmation. After breaking it during the day, Nifty maintained the 20,850 levels of immediate support. The market has bounced back from yet another significant 10-day EMA support level on Wednesday, around 20,720 levels, according to Senior Technical Research Analyst at HDFC Securities Nagaraj Shetti.
Shetti claims that the Wednesday upside recovery from the immediate supports points to the possibility of short-term additional upside for the Nifty 50.
“In the near term, there is a greater chance that Nifty will move back up into all-time highs of 21,040+ levels,” he continued.
What to anticipate from Bank Nifty and Nifty 50 today is as follows:
Inventive Forecasts
The bulls showed strength on December 13 by holding Nifty’s critical support level of 20,800 following a brief decline.
From the day’s low to its peak, the index saw a dramatic turnaround. “Traders are advised to initiate fresh long positions considering the current levels, as the overall market sentiment is still bullish,” stated Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Shah suggests setting a stop-loss at 20,800 with the objective of achieving possible upside levels of 21,400/21,500 in the near future.
Bank Nifty Forecasts
On December 13, the Bank Nifty index closed at 47,092, down 5 points.
“The Bank Nifty index proved resilient by holding off on breaking below the critical support level of 46,800, as evidenced by the sharp recovery from lower levels, allaying initial fears. The index must remain above 47,200 in order to continue and accelerate the upward trend. Targeting levels of 48,000/48,500 in the near future, further gains could be possible with a strong close above 47,500, where call writers are active, according to Shah.
Additionally, Bank Nifty is consolidating between 46,500 and 47,590. “On the downside, Bank Nifty is likely to continue rising toward 48,000 until it holds the critical support level at 46,800.
