Following conflicting cues from the global market, the Indian stock market indices, the Sensex and Nifty 50, are probably going to open on a sour note on Tuesday.
The Indian benchmark index has had a subdued start, according to Gift Nifty’s trends. Compared to the Nifty futures’ previous close of 21,466.00, the Gift Nifty was trading at about 21,465.00.
Following a new high set by the markets last week, profit-booking caused the domestic equity indices to end lower on Monday.
The Nifty 50 closed 38.00 points, or 0.18%, lower at 21,418.65, while the Sensex fell 168.66 points to close at 71,315.09.
Nifty 50 moved sideways before forming a candlestick-like doji pattern.
Looking closely at the 15-minute charts, we can see that the Nifty closed below the 20-period Moving Average (MA) and has been making lower tops today. For the immediate future, this is a very weak signal. The 50 period MA, which is currently at 21,388 on the Nifty, may be tested in the near future, according to Senior Technical and Derivative Analyst Subash Gangadharan of HDFC Securities.
In his opinion, the markets have cooled off following last week’s dramatic surge. Hence, any corrections are probably going to be brief and an opportunity to purchase high-quality stocks.
What can we anticipate from Bank Nifty and Nifty 50 today?
Good Open Interest Information
Regarding the Open Interest (OI) data, Choice Broking Research Analyst Deven Mehata pointed out that the highest OI on the call side was at 21,500, followed by 21,600 strike prices, and the highest OI on the put side was at 21,300 strike prices.
Forecasts for the Nifty 50
On the daily chart, the Nifty 50 created a bearish Harami candlestick pattern, indicating that the current rally may come to an end.
Furthermore, the hourly timeframe’s RSI indicator has experienced a bearish crossover inside the oversold zone, pointing to a decline in market optimism. Short-term corrections towards 21,220/21,100 could result from a drop below 21,350, according to Rupak De, Senior Technical Analyst at LKP Securities.
On the other hand, he thinks the resistance is expected at a higher level of 21,500.
Forecasts for the Bank Nifty
On December 18, there was a decline in the Bank Nifty index, which closed 276 points lower at 47,868.
The Bank Nifty index ran into resistance at about 48,000, and since it was unable to hold those higher levels, there was some selling pressure. The index’s immediate support is located at 47,800, according to Kunal Shah, a LKP Securities senior technical and derivative analyst.
According to Shah, a breach below this level might increase the selling pressure and drive the index closer to the 47,400–47,000 range.
