The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 21,777 level as compared to the Nifty futures’ previous close of 21,809.
The domestic equity benchmark indices resumed their upward march on Thursday, snapping their two-day losing run, amid across-the-board buying despite mixed global cues.
The Sensex rallied 490.97 points to end at 71,847.57, while the Nifty 50 closed 141.25 points, or 0.66%, higher at 21,658.60.
Nifty 50 formed a small positive candle on the daily chart, which is placed within a high low range of Wednesday’s bear candle.
Also Read: Indian stock market: 7 key things that changed for market overnight – Gift Nifty to US private payrolls data
“Technically, this could be considered as a bullish inside day type candle pattern. Hence, more upside in the next session is likely to confirm this bullish pattern. The positive chart pattern like higher tops and bottoms is intact on the daily chart and the swing low of last session is expected to be a higher bottom of the sequence,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
According to Shetti, the short-term trend of Nifty 50 seems to have reversed on the upside after two sessions of minor weakness and the Nifty 50 sustaining above 21,550-21,600 levels could possibly open the next upside towards 21,850-21,900 levels and higher in the near term.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Predictions
The Nifty 50 recovered from two bearish days which indicates continued dominance by the bulls in the market.
“The present sentiment suggests a promising trajectory towards 21,800-21,850 for the Nifty. If it surpasses 21,850, we might anticipate a further climb toward 22,000. Notably, the index appears to have a short-term support level around 21,500,” said Rupak De, Senior Technical Analyst at LKP Securities.
He believes a downward shift would likely initiate only if it falls below this mark; until then, it seems favorable for buyers to take advantage of market dips.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — January 5
Bank Nifty Predictions
The Bank Nifty jumped 491 points to end above the 48,000 mark at 48,196 on January 4, snapping four-day losses.
“An analysis of the daily chart for Bank Nifty highlighted the formation of a morning star candlestick pattern accompanied by substantial volume, indicative of a robust bullish momentum in banking stocks. Positional traders are recommended to uphold their positions, setting a stop loss at 47,500, with target levels identified at 48,700 and 49,000 in the short run,” said Mandar Bhojane, Equity Research Analyst, Choice Broking.
Upon reviewing the Open Interest (OI) data, he added, the call side displayed the highest OI at the 49,000 level, closely followed by the 49,500 strike prices. Conversely, on the put side, the highest OI was observed at the 48,000 strike price.
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: 05 Jan 2024, 07:28 AM IST
