The trends on Gift Nifty also indicate a higher start for the Indian benchmark index. The Gift Nifty was trading around the 22,658 level, a premium of nearly 50 points from the Nifty futures’ previous close.
On Friday, the Indian stock market indices ended flat after the Reserve Bank of India (RBI) maintained the status quo on policy rates and stance, in line with expectations.
The Sensex rose 20.59 points to close at 74,248.22, while the Nifty 50 settled flat at 22,513.70.
Nifty 50 formed a small positive candle on the daily chart with minor upper and lower shadows.
“This market action signals narrow range movement in the market near new all-time highs. Having formed this pattern beside the negative candle of Thursday, the predictive value of the pattern could be less,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
He believes the near-term trend of Nifty remains positive and the ongoing range movement in the market is suggesting a possibility of sharp swing movement on either side.
“Hence a range expansion could be watched around 22,600 and 22.300 levels on either side. Therefore, a decisive move above 22,600 levels could bring quick upside towards 22,800 levels and a slide below 22,300 levels is likely to open fresh round weakness from the highs,” Shetti added.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Prediction
The Nifty 50 index shifted into a narrow range movement on April 5 and closed the day on a flat note.
“The index has remained sideways throughout the session, reflecting a pause in the market trend following the formation of a hanging man pattern. The sentiment may continue to remain sideways due to the lack of a directional breakout or pattern formation. At the higher end, 22,650 might prove to be a crucial resistance level. A fresh rally is not anticipated as long as the index remains below 22,650,” said Rupak De, Senior Technical Analyst, LKP Securities.
On the lower end, support is evident at 22,300; if breached, the index might decline towards the 22,000 – 21,900 range, he added.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — April 8
Bank Nifty Prediction
The Bank Nifty index rallied 432 points to close at 48,493 after the RBI policy meeting outcome on Friday, extending gains for the third consecutive session.
“Following the RBI policy announcement, the Bank Nifty maintained its robust momentum, remaining above the crucial level of 48,000. This suggests the potential for reaching new all-time highs next week, possibly even touching the 50,000 mark,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Notably, aggressive put writing has been observed at lower strikes, establishing a supportive base in the 48,200-48,000 zone, which is anticipated to serve as a cushion for bullish sentiment, 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: 08 Apr 2024, 07:31 AM IST