Following encouraging signals from the global market, the Indian stock market indices, the Sensex and Nifty 50, are probably going to open higher on Friday.
The Indian benchmark index is off to a better start, according to Gift Nifty’s trends. The Gift Nifty was trading at about 21,382, compared to the previous close of 21,376 for the Nifty futures.
The domestic equity market saw a robust recovery on December 21 and closed higher due to widespread buying.
The Nifty 50 gained 104.90 points, or 0.50%, to close at 21,255.05. The Sensex finished 358.79 points higher at 70,865.10.
On the daily chart, the Nifty 50 created a bullish piercing candlestick pattern that suggested possible bullish momentum.
The short-term trend is still downward on the daily chart, despite the Nifty’s strong recovery and partial retracement of its losses from the previous session. The 14-day RSI and other momentum indicators are also in a declining trend, having dropped significantly from Wednesday’s overbought levels. According to Subash Gangadharan, Senior Technical and Derivative Analyst at HDFC Securities, “this is a negative signal for the near term and implies that the Nifty remains in a short-term downtrend.”
He feels that in order to stop the current downward trend, the Nifty 50 would need to surpass the most recent highs of 21,593. Twenty,976 is a critical support to keep an eye on in case weakness reemerges.
What to anticipate from Bank Nifty and Nifty today is as follows:
Nifty 50 Forecasts
“Recently, Nifty showed resiliency by sharply rising above a crucial support level at 21,000, confirming a bullish outlook. Positive momentum was indicated by the index closing above its 10-day moving average, according to Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Shah says the important levels to watch are 21,300, which is the first resistance level, and 21,000, which is the immediate support level.
Forecasts for the Bank Nifty
On Thursday, the Bank Nifty bounced back and ended the day at 47,840, up 395 points.
“Bank Nifty showed tenacity by decisively recovering from a critical support level at 47,000, validating a bullish trend. The strength of the index was demonstrated when it closed above the resistance at 47,500. Bank Nifty finds immediate support at 47,500 after closing above the 10-day moving average, while 48,000 serves as the initial resistance, according to Shah.
