The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 22,690 level, a premium of nearly 60 points from the Nifty futures’ previous close.
On Thursday, the domestic equity indices ended sharply lower amid monthly F&O expiry, extending losses for the fifth session in a row.
The Sensex plunged 617.30 points to close at 73,885.60, while the Nifty 50 settled 216.05 points, or 0.95%, lower at 22,488.65.
Nifty 50 formed a bearish candlestick pattern with upper and lower shadows on the daily timeframe.
“On the daily chart, the uptrend has weakened. Thursday’s negative closing has led to the Nifty closing below the previous swing high of 22,795. 14-day RSI at 51.1 is falling and remains below its 9 day EMA. This indicates that momentum is weakening. Nifty nevertheless continues to hold above the 20 and 50 day SMA,” said Subash Gangadharan, Senior Technical/Derivative Analyst at HDFC Securities.
While the Nifty has corrected further, it has bounced back from close to the 50 day SMA. According to Gangadharan, this opens the possibility of a further bounce back in the coming sessions.
“Nifty would need to cross the immediate resistance of 22,706 for the bulls to gain an upper hand. Crucial supports to watch for resumption of weakness are at 22,417 – 22,387. Markets are likely to be volatile in the coming sessions as we approach the election result announcement,” he added.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
According to the Nifty Open Interest (OI) data, on the call side, the highest OI is observed at the 23,000 strike price followed by the 23,500 strike price. On the put side, the highest OI is at the 22,000 strike price, noted Mandar Bhojane, Research Analyst at Choice Broking.
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Nifty 50 Prediction
The Nifty 50 index closed with a loss of 216 points below the 22,500 level on May 30.
“The Nifty has remained volatile during the session with predominant bearishness. The sentiment for the short term remains weak as the index slipped below the critical 21-day Exponential Moving Average (21-EMA). Call writing activity was significant at 22,500. Therefore, to witness a meaningful recovery, the Nifty needs to sustain above 22,500,” said Rupak De, Senior Technical Analyst, LKP Securities.
However, according to him, failure to move above 22,500 might attract fresh selling in the market, potentially driving the index towards 22,300 / 22,100.
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Bank Nifty Prediction
The Bank Nifty index outperformed the Nifty 50 and closed 181 points higher at 48,682 on Thursday, forming a bearish candle on the daily chart with good volume, indicating that further bearish pressure will continue in the market.
“After a gap down opening, Bank Nifty found support near its 21-day EMA, closing with a bullish candlestick. A recovery in large-cap private bank stocks contributed to keeping the index in the green. The critical support level for Bank Nifty is 48,300, while 49,000 serves as strong resistance,” De said.
A decisive movement is anticipated once these levels are breached, 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: 31 May 2024, 07:27 AM IST
