The trends on Gift Nifty also indicate a hot start for the Indian benchmark index. The Gift Nifty was trading around 21,482 level compared to the Nifty futures’ previous close of 21,558.
On Friday, the domestic equity indices continued their bull run to end sharply higher, with the Nifty 50 index closing above 21,450 level.
The BSE Sensex jumped 969.55 points, or 1.37%, to end at 71,483.75, while the NSE Nifty 50 settled 273.95 points, or 1.29%, higher at 21,456.65, on December 15.
“Technically, with the Nifty higher to new live highs, the bulls remain in control. Further gains are likely once the immediate resistance of 21,492 is cleared,” said Subash Gangadharan, Senior Technical and Derivatives Analyst, HDFC Securities.
Read also: 6 things that changed for the Indian stock market over the weekend – Gift Nifty, Fed pushback on US trade activity.
However, caution is warranted for the near term as the 14-day RSI at 84.93 is in overbought territory. 14-week RSI is at 75.87, which implies that it is not extremely overbought and there is scope for more upsides in the medium term. Thus, any short-term corrections can be used to buy quality stocks, he added.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Predictions
Nifty’s upward momentum continues with the bulls keeping control in the market. The Nifty 50 index marked its seventh consecutive weekly gain on December 15 and touched a new all-time high.
“The prevailing sentiment appears strongly in favor of the bulls, as indicated by the absence of any reversal signals on the technical charts. Resistance is observed at 21,500, while a possible further rally in the Nifty could occur after a breach of this level,” said Rupak De , Chief Technical Analyst at LKP Securities.
According to him, support for Nifty 50 is currently positioned at 21,300.
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Bank Nifty Predictions
The Bank Nifty breached 48,000 mark for the first time and rallied 411 points to end at 48,144 on December 15.
“The Bank Nifty bulls maintain their robust momentum, pushing the index past the 48,000 level. The overall market sentiment remains bullish, supported by a strong base at 47,500. Any rally to this support level is seen as buying opportunities,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
According to Shah, the upside potential for the index is projected to reach 50,000, indicating continued optimism among market participants.
Read also: Day trading guide for the stock market today: Six stocks to buy or sell on Monday — December 18
Santosh Meena, Head of Research, Swastika Investmart said Bank Nifty’s successful close above the 48,000 hurdle opens the door for further bullish momentum towards 48,500/48,800 levels.
“Immediate support lies at 47,500, with a critical support zone at 47,000–46,800 in case of a decline,” Meena added.
Disclaimer: The opinions and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 18 Dec 2023, 07:25 IST