The Indian stock market indices Sensex and Nifty 50 are expected to open higher on Thursday, the monthly expiry day, maintaining their bullish trend amid positive global cues.
The trends on Gift Nifty also point to a slow start for the Indian benchmark index. The Gift Nifty was trading around 21,760, compared to the Nifty futures’ previous close of 21,690.
On December 27, the Indian equity market finished higher for the fourth consecutive session, led by broad-based buying.
The Sensex closed 701.63 points higher at 72,038.43, while the Nifty 50 gained 213.40 points, or 1%, to 21,654.75.
On the daily chart, Nifty 50 created a long bull candle that closed at all-time highs. Technically speaking, this pattern suggests an upward breakout of the prior swing high, which was at levels of 21,593.
According to the daily chart, positive chart patterns like higher tops and bottoms are still in place, and the Nifty is currently heading in the direction of the new higher top formation. Nevertheless, no higher top reversal at the highs has been confirmed. There may be more upside in the near term now that the market has overcome the immediate resistance of the 21,550–21,600 levels, according to HDFC Securities Senior Technical Research Analyst Nagaraj Shetti.
Shetti says that in the coming week, the levels between 22,000 and 22,200 should be the next upside targets to be monitored.
Today’s Nifty 50 and Bank Nifty predictions:
Nifty Open Interest Information
The highest Open Interest (OI) on the call side is observed at 22,000, followed by 21,800 strike prices, according to data. On the put side, the strike price of 21,500 has the most open interest. According to Mandar Bhojane, Equity Research Analyst at Choice Broking, this indicates the levels at which options traders have the most exposure.
Nifty 50 Forecast
At 21,500, the Nifty 50 experienced a significant rally as put writers amassed large positions.
A breakout from consolidation was also visible on the daily chart. The Relative Strength Index (RSI) shows a bullish crossover, with the index above a critical moving average.
Looking ahead, the index could aim for a range of 21,750-21,800 on the upside, with support at 21,500.
Bank Nifty Forecast
On December 27, the Bank Nifty index rose 557 points, or 1.2%, to a new high of 48,282.
“As seen on the daily chart, the Bank Nifty recently broke out of consolidation.” It has consistently maintained a position above a key moving average. “The Relative Strength Index (RSI) also shows a bullish crossover on the daily chart,” De added.
Looking ahead, he believes the Bank Nifty index could rise to levels between 48,500 and 48,800, with a support base at 48,000.
