The Indian stock market indices, Sensex and Nifty 50, are expected to open flat on Monday, tracking mixed global cues.
The trends on Gift Nifty also point to a slow start for the Indian benchmark index. The Gift Nifty was trading around 21,765 compared to the Nifty futures’ previous close of 21,785.
For the second consecutive session, the domestic benchmark equity indices ended higher on Friday, with the Nifty 50 closing above 21,700.
The Sensex closed 178.58 points higher at 72,026.15, while the Nifty 50 closed at 21,710.80, up 52.20 points, or 0.24%.
On Friday, the Nifty formed an identical open and close pattern (with a 5 point upper margin), indicating a type of doji pattern (not a traditional one) at the highs.
“Normally, doji formations at highs indicate that longs should be avoided.” However, the formation of this pattern during range movement, and thus the sharp negative implication, cannot be anticipated. The Nifty’s short-term uptrend remains intact, but the market is likely to encounter resistance around 21,800-21,850 levels in the coming sessions,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He believes that a decisive move only above 21,850-21,900 could open the door to the next upside target of 22,200.
Today’s Nifty 50 and Bank Nifty movements are as follows:
Predictions for the Nifty 50
The Nifty 50 is expected to remain volatile and consolidate in the coming months.
“Bullish activity has resumed in the market, with buying interest evident during dips, following a rapid rebound from its positional support at 21,500.” The current sentiment is bullish, but the Nifty meets initial resistance at 21,750, where it is under selling pressure. “The immediate support level is 21,600,” Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, stated.
According to Shah, a decisive close above 21,750 could propel the Nifty 50 towards the 22,000 mark, indicating further upward movement.
Bank Nifty Forecast
On January 5, the Bank Nifty index ended a volatile session 37 points lower at 48,159.
“Bank Nifty shows active bullish activity, rebounding from the 14-day moving average support at 47,800 after a strong recovery from the 47,500 support level.” “A close above 48,200 is critical, as it could propel the index to levels of 48,500 and 48,800,” Shah said.
He added that the immediate support for the Bank Nifty is at 47,800, indicating a key level to monitor in the current market scenario.
