The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 21,437 level as compared to the Nifty futures’ previous close of 21,488.
On Wednesday, the Indian stock market indices witnessed an upside bounce amidst volatility and ended higher, snapping their two-day losing run.
The Sensex rallied 689.76 points, or 0.98%, to close at 71,060.31, while the Nifty 50 settled 215.15 points, or 1.01%, higher at 21,453.95.
Nifty formed a long positive candle on the daily chart after opening lower, which is indicating a formation of bullish Piercing line type candle pattern. Formation of such patterns after a reasonable weakness calls for caution for shorts.
“The negative chart pattern like lower tops and bottoms is intact and the Nifty is currently moving up towards the formation of a new lower top of the sequence (which is yet to be formed at the highs). Nifty is currently placed at the hurdle of mid part of Tuesday’s long bear candle at 21,500 levels,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
He believes the short-term trend of Nifty seems to have reversed up, but the uncertainty remains in the market at the highs. The market could encounter strong resistance around 21,500-21,600 levels in the coming session.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Prediction
The Nifty exhibited volatility throughout the day following a weak start.
“On the hourly chart, the index began displaying initial signs of a reversal. However, it closed below the resistance level of 21,500. A decisive move above 21,500 could potentially trigger a significant rally in the index. On the downside, support is situated at 21,400-21,350,” said Rupak De, Senior Technical Analyst, LKP Securities.
He is of the view that a confirmed breakthrough above 21,500 may propel the index towards 21,700 and beyond.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — January 25
Bank Nifty Prediction
“After a brief downturn, the bulls made a strong comeback, successfully defending the crucial support level of 44,500, where fresh put writing activities were observed. Despite the rebound, the index is still navigating a downtrend. A potential pullback rally towards the 45,500 mark is anticipated,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
However, he believes a significant development would be the index closing above 45,500, triggering further short-covering moves towards the 46,000 level, characterized by the highest open interest on the call side.
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 taking any investment decisions.
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Published: 25 Jan 2024, 07:41 AM IST