The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 22,380 level, a premium of nearly 100 points from the Nifty futures’ previous close.
On Wednesday, the domestic equity indices snapped three-day winning run to end lower, with the benchmark Nifty 50 holding the 22,200 level.
The Sensex fell 117.58 points, or 0.16%, to close at 72,987.03, while the Nifty 50 settled 17.30 points, or 0.08%, lower at 22,200.55.
Nifty 50 formed a small negative candle on the daily chart with a minor upper and lower shadow.
“Technically, this pattern signals choppy movement in the market at the hurdle. Normally, such high wave type candle pattern formation after a sharp decline calls for a caution for impending reversal. But having bounced back from the lows recently, the significant negative pattern is not expected,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
He believes the short-term trend of Nifty continues to be up and further consolidation or minor dip in the market is expected before showing further upmove.
A sustainable move above the immediate resistance of 22,300 levels is likely to open the doors for the higher target of 22,600 levels in the near term, Shetti 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 22,000 level, implying potential support at this level. On the call side, significant OI concentrations are observed at the 22,500 and 22,600 levels, nearing all-time highs, said Mandar Bhojane, Research Analyst at Choice Broking.
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Nifty 50 Prediction
The Nifty 50 index shifted into a consolidation near the immediate resistance of 22,300 levels on May 15 and closed the day on a slightly weak note.
“The Nifty largely traded sideways as the index failed to generate any significant directional breakout. Bulls struggled to push Nifty above the 22,250 mark on a closing basis. Sentiment remains subdued as long as it stays below 22,250. A decisive move beyond this level could potentially propel Nifty towards 22,600 and beyond,” said Rupak De, Senior Technical Analyst, LKP Securities.
Conversely, he believes a failure to sustain above 22,200 might invite selling pressure in the market.
V.L.A. Ambala, Co-founder – Stock Market Today (SMT) noted that the Nifty 50 was trading with an RSI of 58 on its weekly and 70 on its monthly timeframe, suggesting a probability of further correction.
According to him, based on the current momentums, Nifty may find its key support around 22,000 and 21,830 levels and face resistance between 22,300 and 22,370 levels in the next session.
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Bank Nifty Prediction
The Bank Nifty index declined 172 points to close at 47,687 on Wednesday, forming a bearish candlestick pattern on the daily charts.
“The Bank Nifty index experienced sideways trading during the weekly expiry day, encountering resistance at the 48,000 level. To sustain the upward momentum, the index must decisively surpass this mark, targeting levels around 48,500,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
On the downside, support is positioned at 47,200, presenting favorable buying opportunities on dips toward this level,” Shah 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: 16 May 2024, 07:28 AM IST
