The Indian stock market indices Sensex and Nifty 50 are likely to extend gains and open higher on Wednesday supported by positive global cues.
The trends on Gift Nifty also indicate a gap for the Indian benchmark index. The Gift Nifty was trading around 21,610 level compared to the Nifty futures’ previous close of 21,529.
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On Tuesday, domestic indices ended higher after a strong recovery from the day’s lows and hit a record high intraday.
The Sensex ended 122.10 points higher at 71,437.19, while the Nifty 50 rose 34.45 points, or 0.16%, to settle at 21,453.10.
Nifty 50 has formed a hammer candlestick pattern on the daily chart, suggesting possible bullish momentum.
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“Zooming into the 15-minute charts, we can observe that the Nifty is now stuck in a range and the 20 and 50 period Moving averages have flattened. This indicates that markets could consolidate in the very near term. Further directional signals are therefore likely will appear only across the 21,337-21,505 trading range,” said Subash Gangadharan, Chief Technical and Derivatives Analyst, HDFC Securities.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Predictions
Nifty 50 found support just above the 21EMA on the hourly chart, triggering a strong recovery in the latter part of the session.
“The momentum indicator is supporting a positive crossover, suggesting continued strength. The bullish trend is expected to continue as long as it remains above 21,350 permanently. On the upside, Nifty is likely to face resistance from callers at 21,500,” said Rupak De, Chief Technical Analyst at LKP Securities .
A definite break above 21,500 could possibly start a big market rally; until then, consolidation seems likely, he added.
Read also: Day trading guide for the stock market today: Six stocks to buy or sell Wednesday — December 20
Bank Nifty Predictions
Bank Nifty is consolidating in the range of 47,600 to 48,200. The index ended flat at 47,871 on December 19.
“The Bank Nifty index has maintained its consolidation phase within a range, but needs to close above the crucial level of 48,000 to sustain the upward momentum. The lower support is positioned at 47,800, and a crucial break below this level on a closing basis may trigger further selling pressure in the market,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
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: 20 Dec 2023, 07:35 IST