The Indian stock market indices, Sensex and Nifty 50, are expected to open lower on Friday tracking mixed cues from global peers.
The trends on Gift Nifty indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading at 22,675 level, a discount of around 130 points from the Nifty futures’ Wednesday’s close.
On Wednesday, the domestic equity indices ended with strong gains with the benchmark Nifty 50 registering a new all-time high at 22,775 and closing near the highs.
The Sensex surged 354.45 points to close at 75,038.15, while the Nifty 50 settled 111.05 points, or 0.49%, higher at 22,753.80.
Nifty 50 formed a small positive candle on the daily chart with minor upper and lower shadow.
“Technically, this pattern indicates a formation of high wave type candle pattern. But, having formed this pattern amidst a sideways range, the predictive value of this pattern could be less,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
According to him, Nifty is currently placed at the hurdle of around 22,800 levels (ascending resistance trend line and 1.618% Fibonacci extension).
“Though Nifty placed near the hurdle, still there is no sign of any reversal forming at the highs. Immediate support is at 22,615 levels. A decisive move above 22,800 levels is expected to open further upside momentum for the market ahead,” Shetti added.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
Analyzing the Open Interest (OI) data, Mandar Bhojane, Research Analyst at Choice Broking said the call side exhibits the highest OI at 23,000, followed by the 22,900 strike prices, serving as robust resistance levels for the Nifty.
Conversely, the highest OI on the put side is observed at the 22,700 strike price, indicating a support level. This data, according to him, suggests a sideways movement scenario for the Nifty.
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Nifty 50 Prediction
The Nifty 50 index continued to move up range bound action on April 10 and closed the day higher by 111 points.
“The Nifty mostly remained sideways today as investors preferred to wait ahead of the US CPI inflation data, which could potentially impact rate cuts by the Fed. The resistance zone is placed at 22,700-22,750, while support is at 22,600. A decisive move above 22,750 might induce a rally towards 23,000 in the short term,” said Rupak De, Senior Technical Analyst, LKP Securities.
Since the market appears to be range-bound, he suggests buying on dips and selling on rallies might prove to be a good strategy with proper stop-loss measures.
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Bank Nifty Prediction
The Bank Nifty index surged 256 points to close at 48,987 on Wednesday.
“The Bank Nifty index remained in consolidation mode at elevated levels, struggling to close above the 49,000 mark. Immediate support rests at 48,500, with resistance at 49,000. Any decisive move beyond these levels is expected to trigger trending moves,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
The index maintains a buy-on-dip stance, with 48,500 acting as a crucial support level to cushion against any downturns, 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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