Today's Nifty 50 and Sensex: The Gift Nifty indicators also point to a stronger opening for the Indian benchmark market. The Gift Nifty was trading at a premium of around 23 points over the previous closing of the Nifty futures, at about 23,290.
Ahead of US President Donald Trump's inauguration, the key Indian stock market indices, the Sensex and Nifty 50, are probably going to open higher on Monday, after encouraging global market signals.Additionally, the Gift Nifty patterns point to a stronger start for the Indian benchmark index. The Gift Nifty was trading at a premium of around 23 points over the previous closing of the Nifty futures, at about 23,290.
The benchmark indices stopped their three-day winning streak on Friday, as the domestic equities market closed down.
The Nifty 50 closed 108.60 points, or 0.47%, lower at 23,203.20, while the Sensex fell 423.49 points, or 0.55%, to conclude at 76,619.33.
On the daily chart, the Nifty 50 formed a tiny negative candle with a slight lower shadow, indicating that the recent upward bounce was weak.
As of right moment, the 13th January opening downward gap has proven to be a formidable obstacle. A tiny bullish candle with a slight upper and lower shadow was formed by the Nifty on the weekly chart. Technically, the creation of a doji-type candle pattern is indicated by the previous week's market activity. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, "a doji pattern following a reasonable weakness could normally be an impending reversal signal post confirmation."
He asserts that a clear upside above 23,400 might only spark a resurgence of purchasing interest in the market and that the Nifty 50's short-term trend is still weak amid range fluctuation. At 23,100, immediate support is set up.
What to anticipate from the Nifty 50 and Bank Nifty today is as follows:
Forecast for the Nifty 50
On January 17, the Nifty 50 saw volatility and went into weakness, closing the day 108 points lower.
After the Nifty 50 index encountered resistance at a pivotal moving average, sentiment remained negative. This pessimistic outlook can last for a short while or as long as the index stays below 23,400. On the down side, it might go closer to 23,000. A significant decline below 23,000 could lead to a more extensive market slump. On the other hand, Rupak De, Senior Technical Analyst at LKP Securities, stated that 23,400 is probably going to continue to be a significant resistance level.
According to Puneet Singhania, Director of Master Trust Group, the Nifty 50 is currently trading below both its daily and 21-week EMAs.
Additionally, it broke through the previously strong horizontal support zone between 23,200 and 23,300. This breakdown points to a possible decline to 22,800. But if the index recovers 23,400, it might surge to 23,700, which would indicate buying. Key resistance levels offer selling chances, so traders should keep an eye out for a bounce. Until the index maintains above crucial resistance, the trend is still bearish, Singhania stated.
Market anxiety was indicated by the Nifty 50 index's formation of a high wave doji candlestick pattern, according to VLA Ambala, co-founder of Stock Market Today.
The momentum of the index now points to a further drop in the coming weeks. Nifty should anticipate resistance in the vicinity of 23,350 and 23,420 and support between 23,050 and 22,800 in this scenario, according to Ambala.
Bank Nifty Forecast
The Bank Nifty index formed a bearish candlestick pattern on the daily period as it fell 738.10 points, or 1.5%, to settle at 48,540.60 on Friday.
The Bank Nifty broke its consolidation zone and closed below its 21-week and daily EMAs, extending losses for the third week in a row. Strong bearish sentiment is highlighted by the violation of the ascending trendline, which served as a critical support in the past. At 48,000, there is currently important support; a break of this level might cause the price to drop further lower, to 47,200. According to Puneet Singhania, "the index is in a'sell-on-rise' mode, offering selling opportunities for any bounce near 48,900."
He states that traders can set a stop-loss at 49,500 to control risk, and that the trend is still negative with more downside anticipated unless Bank Nifty regains important resistance levels.
On a daily basis, the Bank Nifty has produced a large red candle, which indicates weakness, according to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd. (A Pantomath Group Company).
"The index will receive instant support at 47,900 levels on the downside. Nonetheless, the index remained below the 49,910 levels that represent its 250-Days Simple Moving Average (250-DSMA) obstacle. Unless the Bank Nifty stays over 49,910, traders are encouraged to use a sell-on-bounce strategy, Yedve stated.
Market anxiety was indicated by the Nifty 50 index's formation of a high wave doji candlestick pattern, according to VLA Ambala, co-founder of Stock Market Today.
The momentum of the index now points to a further drop in the coming weeks. Nifty should anticipate resistance in the vicinity of 23,350 and 23,420 and support between 23,050 and 22,800 in this scenario, according to Ambala.
Bank Nifty Forecast
The Bank Nifty index formed a bearish candlestick pattern on the daily period as it fell 738.10 points, or 1.5%, to settle at 48,540.60 on Friday.
The Bank Nifty broke its consolidation zone and closed below its 21-week and daily EMAs, extending losses for the third week in a row. Strong bearish sentiment is highlighted by the violation of the ascending trendline, which served as a critical support in the past. At 48,000, there is currently important support; a break of this level might cause the price to drop further lower, to 47,200. According to Puneet Singhania, "the index is in a'sell-on-rise' mode, offering selling opportunities for any bounce near 48,900."
He states that traders can set a stop-loss at 49,500 to control risk, and that the trend is still negative with more downside anticipated unless Bank Nifty regains important resistance levels.
On a daily basis, the Bank Nifty has produced a large red candle, which indicates weakness, according to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd. (A Pantomath Group Company).
"The index will receive instant support at 47,900 levels on the downside. Nonetheless, the index remained below the 49,910 levels that represent its 250-Days Simple Moving Average (250-DSMA) obstacle. Unless the Bank Nifty stays over 49,910, traders are encouraged to use a sell-on-bounce strategy, Yedve stated.
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