The Nifty 50 and Sensex indices in India are expected to open cautiously today, following mixed cues from global markets.
Gift Nifty trends also point to a slow start for the Indian benchmark index. The Gift Nifty was trading around 21,777, compared to the previous close of the Nifty futures at 21,809.
On Thursday, the domestic equity benchmark indices resumed their upward march, snapping a two-day losing streak, amid widespread buying despite mixed global cues.
The Sensex advanced 490.97 points to close at 71,847.57, while the Nifty 50 advanced 141.25 points, or 0.66%, to 21,658.60.
On the daily chart, the Nifty 50 formed a small positive candle within the high low range of Wednesday’s bear candle.
“Technically, this could be categorized as a bullish inside day candle pattern.” As a result, further gains in the next session are likely to confirm this bullish pattern. The positive chart pattern of higher tops and bottoms is still visible on the daily chart, and the swing low of the previous session is expected to be a higher bottom of the sequence,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to Shetti, the Nifty 50’s short-term trend appears to have reversed on the upside after two sessions of minor weakness, and the Nifty 50 sustaining above 21,550-21,600 levels in the near term could potentially open the door to the next upside towards 21,850-21,900 levels and higher.
Today’s Nifty 50 and Bank Nifty movements are as follows:
Predictions for the Nifty 50
The Nifty 50 recovered from two bearish days, indicating that the bulls continue to dominate the market.
“The current sentiment points to a promising path for the Nifty towards 21,800-21,850.” If it exceeds 21,850, we can expect it to rise further toward 22,000. Notably, the index appears to have a short-term support level near 21,500,” according to Rupak De, Senior Technical Analyst at LKP Securities.
He believes a downward shift will occur only if it falls below this level; until then, it appears advantageous for buyers to take advantage of market dips.
Bank Nifty Forecast
On January 4, the Bank Nifty jumped 491 points to end above the 48,000 mark at 48,196, snapping a four-day losing streak.
“An examination of the daily chart for Bank Nifty revealed the formation of a morning star candlestick pattern accompanied by significant volume, indicating a strong bullish trend in banking stocks.” Positional traders are advised to hold their positions with a stop loss at 47,500 and short-term targets of 48,700 and 49,000,” said Mandar Bhojane, Equity Research Analyst at Choice Broking.
He added that after reviewing the Open Interest (OI) data, the call side had the highest OI at the 49,000 level, closely followed by the 49,500 strike prices. On the put side, the highest OI was seen at the 48,000 strike price.
