Today's Nifty 50 and Sensex: The Gift Nifty indicators also point to a poor start for the Indian benchmark market. The Gift Nifty was down around 60 points from the previous closing of the Nifty futures, trading at about 23,721 levels.
Following weak global market indications, the key Indian stock market indices, the Sensex and Nifty 50, are probably going to open lower on Thursday.Additionally, the Gift Nifty trends show that the Indian benchmark index is off to a bad start. The Gift Nifty was down around 60 points from the previous closing of the Nifty futures, trading at about 23,721 levels.
The domestic equity market ended Wednesday flat with a bearish bias after rising from the day's low.
The Nifty 50 closed 18.95 points, or 0.08%, lower at 23,688.95, while the Sensex slid 50.62 points, or 0.06%, to conclude at 78,148.49.
On the daily chart, the Nifty 50 created a tiny red candle with a lengthy bottom shadow.
From a technical standpoint, this market activity suggests that a "hammer"-shaped candle pattern is forming. upon a decent decrease, such hammer formation typically signals an imminent upward trend reversal upon confirmation. Even though the Nifty 50 fell below the 200-day EMA (Exponental Moving Average) around 23,700 levels, there was no significant decline below this important support. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, this 200 DEMA has previously provided a notable trend reversal on the upside.
He claims that although the Nifty 50's short-term trend is still sluggish, the market's astute upward comeback from levels close to 23,500 suggests that there may be a potential for an upside bounce in the upcoming sessions.
An upward market recovery might be confirmed by a steady advance above the 23,800 level barrier. At 23,496 levels, immediate support is provided," Shetti stated.
What to anticipate from the Nifty 50 and Bank Nifty today is as follows:
Nifty OI Information
Strong resistance levels are shown by the Nifty Open Interest (OI) data, which shows that the call side's largest OI occurs at the 23,800 and 24,000 strike prices. Hardik Matalia, a derivative analyst at Choice Broking, stated that the 23,600 and 23,500 strike prices are important support levels on the put side, where OI is focused.
Forecast for the Nifty 50
After making a sharp drop in the early-mid part of the session and ending the day 18 points lower, the Nifty 50 saw a clever upside comeback from the lows on January 8.
The Nifty 50 index is currently trading between 23,500 and 24,200. On the daily chart, it created a hammer candlestick during Wednesday's session, closing close to its 200-day EMA and fortifying the 23,500 support level. For the index to make a significant move, it must either close below 23,500, which may increase selling pressure, or maintain above 24,000, which would open the door for a possible rally toward 24,500. To determine the index's future trend, it is imperative to keep an eye on these pivotal levels, according to Vatsal Bhuva, LKP Securities' technical analyst.
After making a sharp drop in the early-mid part of the session and ending the day 18 points lower, the Nifty 50 saw a clever upside comeback from the lows on January 8.
The Nifty 50 index is currently trading between 23,500 and 24,200. On the daily chart, it created a hammer candlestick during Wednesday's session, closing close to its 200-day EMA and fortifying the 23,500 support level. For the index to make a significant move, it must either close below 23,500, which may increase selling pressure, or maintain above 24,000, which would open the door for a possible rally toward 24,500. To determine the index's future trend, it is imperative to keep an eye on these pivotal levels, according to Vatsal Bhuva, LKP Securities' technical analyst.
Vice President of Hedged.in Dr. Praveen Dwarakanath pointed out that the Nifty 50 tested its important support at the 23,500 level once again but recovered from it, suggesting a slight bullishness in the index.
The ADX average line is getting closer to the 40 mark, which indicates that the daily timeframe's weakness is abating. Additionally, it signals a slight recovery from current levels, which can be utilized to sell the rising index. Dwarakanath stated, "The daily chart's momentum indicators are rising from the oversold area, suggesting a potential bounce from the current levels."
He claims that data from options writers for the January monthly expiry indicated a short covering of 24,000 puts and increased writing of calls at 23,400 and above levels, indicating a weakness that would persist in January for the index.
Bank Nifty Forecast
The Bank Nifty index closed Wednesday at 49,835.05, down 367.10 points, or 0.73%, creating a bearish candlestick pattern on the daily timescale.
The Bank Nifty recovered during the day after breaking through its crucial support at 49,500 levels. The fact that the index closed below the 50,000 mark suggests that it may be weak. Until the index breaks the 51,600 barrier, you can use any rebound to sell on every rise.A potential weakness in the index is indicated by the rising ADX average line and increasing ADX DI-line, according to Dwarakanath.
According to data from options writers for the monthly expiry, there was a rise in call writing at the 50,000 level, which he said indicated a downturn in the index.
The overall trend was further undermined, according to Om Mehra, Technical Analyst at SAMCO Securities, when the Bank Nifty index fell below the 49,964 mark, a crucial support that had held firm since August 14, 2024.
The daily RSI shows the persistent bearish pressure by hovering close to the oversold zone. The daily chart's Bollinger Bands, however, show that the index is still in the bottom range. A relief rally might appear in the upcoming session if 50,200 is maintained.Positioned at 49,450, the support level may provide as a buffer against more falls. It is best to refrain from making hasty attempts to catch bottoms until a solid base has been formed, Mehra continued.
The ADX average line is getting closer to the 40 mark, which indicates that the daily timeframe's weakness is abating. Additionally, it signals a slight recovery from current levels, which can be utilized to sell the rising index. Dwarakanath stated, "The daily chart's momentum indicators are rising from the oversold area, suggesting a potential bounce from the current levels."
He claims that data from options writers for the January monthly expiry indicated a short covering of 24,000 puts and increased writing of calls at 23,400 and above levels, indicating a weakness that would persist in January for the index.
Bank Nifty Forecast
The Bank Nifty index closed Wednesday at 49,835.05, down 367.10 points, or 0.73%, creating a bearish candlestick pattern on the daily timescale.
The Bank Nifty recovered during the day after breaking through its crucial support at 49,500 levels. The fact that the index closed below the 50,000 mark suggests that it may be weak. Until the index breaks the 51,600 barrier, you can use any rebound to sell on every rise.A potential weakness in the index is indicated by the rising ADX average line and increasing ADX DI-line, according to Dwarakanath.
According to data from options writers for the monthly expiry, there was a rise in call writing at the 50,000 level, which he said indicated a downturn in the index.
The overall trend was further undermined, according to Om Mehra, Technical Analyst at SAMCO Securities, when the Bank Nifty index fell below the 49,964 mark, a crucial support that had held firm since August 14, 2024.
The daily RSI shows the persistent bearish pressure by hovering close to the oversold zone. The daily chart's Bollinger Bands, however, show that the index is still in the bottom range. A relief rally might appear in the upcoming session if 50,200 is maintained.Positioned at 49,450, the support level may provide as a buffer against more falls. It is best to refrain from making hasty attempts to catch bottoms until a solid base has been formed, Mehra continued.
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