The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 23,580 level, a premium of nearly 25 points from the Nifty futures’ previous close.
On Monday, the domestic equity indices ended with minor gains, with the Nifty 50 holding above the 23,500 level.
The Sensex gained 131.18 points to close at 77,341.08, while the Nifty 50 settled 36.75 points, or 0.16%, higher at 23,537.85.
Nifty 50 formed a reasonable bullish candle on the daily chart from near the support of 23,300 levels on Monday, that closed beside the long bear candle of Friday.
“Technically, this pattern indicates a formation of bullish Piercing line type candle pattern. But having formed this pattern within a broader range bound movement the predictive value could be less,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He believes the short-term trend of Nifty remains positive amidst range movement. Having bounced back from near the lower range of 23,300 levels, he believes there is a possibility of Nifty testing the upper range of 23,650 – 23,700 in the short term.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
Analysing the Nifty Open Interest (OI) data, on the call side, the highest OI was observed at the 23,700 and 24,000 strike prices. On the put side, the highest OI was at the 23,000 strike price.
“The increased writing of the put OI at 23,400 levels, further indicates the strong support for the June monthly expiry around these levels. The PCR opened at 0.9 and jumped to 1.10 levels, indicating the index shall trade in the range bound manner for June series, nonetheless if any breakout above 23,600, Nifty spot has potential to test 24,000 levels,” said Rahul Ghose, CEO of Hedged.in.
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Nifty 50 Prediction
Nifty 50 index witnessed a sustainable upside recovery from the lows on June 24 and closed the day higher by 36 points.
“Nifty slipped lower in early trades, but bulls were able to defend around the 55 EMA on the hourly chart. The trend remains positive for the short term as long as it remains above 23,300, where a buy-on-dips strategy might favor traders,” said Rupak De, Senior Technical Analyst, LKP Securities.
According to him, on the higher end, resistance is seen at 23,600 and a decisive move above 23,600 might lead call writers to unwind their positions.
VLA Ambala, Co-Founder of Stock Market Today is of the view that investors are likely to notice increased market volatility and suggests those with a low-risk appetite to consider equity position and trade with caution around expiry sessions.
“Factoring these, it is likely that Nifty could gain support at 23,570 and 23,500 and face resistance at 23,610 and 23,680 levels,” Ambala said.
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Bank Nifty Prediction
The Bank Nifty index ended with marginal gains of 43 points at 51,704 on Monday.
“The Bank Nifty index continued to remain strong and, after testing the support zone of 51,200 – 51,000, bounced back sharply. The immediate resistance is placed at 52,000, where the highest open interest is built up on the call side,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Once the index surpasses this mark, it will likely witness a further upmove towards the 52,400 – 52,800 range, Shah added.
According to Ghose, the increased writing of the put OI at 51,700 levels, indicates strong support for Bank Nifty for June monthly expiry this week.
“The Bank Nifty PCR traded in a highly volatile manner, opened at 1.02 levels and jumped to 1.26 levels, indicating at higher levels the index has limited room on the upside for the last week of June expiry,” he added.
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: 25 Jun 2024, 07:25 AM IST
