The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 22,950 level, a discount of nearly 50 points from the Nifty futures’ previous close.
On Thursday, the domestic equity indices closed at record high, with the Nifty 50 ending above 22,900 level.
The Sensex jumped 1,196.98 points, or 1.61%, to close at 22,967.65, while the Nifty 50 settled 369.85 points, or 1.64%, higher at 75,418.04.
Nifty 50 formed a long bullish candlestick pattern on the daily charts, signaling strong buying interest.
“The 20-period moving average (MA) remains above the 50-period MA indicating that the positive MA crossover is intact. This augurs well for the near-term uptrend to continue. On the Daily chart, Nifty continues to hold above the 20-day and 50-day SMA, which is a positive signal. The 14-day RSI at 68.23 is rising and not overbought, which is encouraging,” said Subash Gangadharan, Senior Technical/Derivative Analyst at HDFC Securities.
While we expect further upsides and new life highs in the coming sessions in the run up to the election results, we remain open to short term consolidations, he added.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
An analysis of Nifty put options reveals a concentration of Open Interest (OI) at the 22,700 level, implying potential support at this level. On the Call side, significant OI concentrations are observed at the 23,500 and 24,000 levels, said Mandar Bhojane, Research Analyst, Choice Broking.
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Nifty 50 Prediction
The Nifty 50 index rallied 1.64% on May 23 to end at record closing high just below the 23,000 mark.
“Nifty witnessed a clean breakout above its prolonged consolidation on the daily timeframe, suggesting a sudden surge of renewed optimism. The index has moved smartly towards 23,000, falling short by just 7 points. The trend looks very strong following the formation of a large green candle on the daily chart,” said Rupak De, Senior Technical Analyst, LKP Securities.
On the higher end, above 23,000, the index might move towards 23,500 in the short term. On the lower end, support is placed at 22,800; the strength could remain intact as long as it remains above 22,800, he added.
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To make the most of this rally, V.L.A. Ambala, Co-founder – Stock Market Today (SMT) advised investors to remain invested, hedge their positions, and diversify their portfolios as the market gears up for a potential upside trend seen from the shift in Nifty’s short-term support to 22,500. Additionally, this rally is expected to be fuelled by movements in midcap and smallcap.
Considering these, she believes Nifty could gain support between 22,850 and 22,770, and experience resistance between 23,340 and 23,150.
Bank Nifty Prediction
The Bank Nifty index jumped 987 points, 2.06% to close at 48,769 on Thursday.
“After several days of staying in a small range, Bank Nifty bulls were finally able to take the index to another level. The renewed optimism lifted the index above 48,500. Further rally from the current level looks likely, as the index might move towards 49.500 in the short term, provided the support at 48,500 remains intact,” De said.
According to him, immediate resistance for Bank Nifty is placed at 49,000.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 24 May 2024, 07:18 AM IST
