The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 21,649 level compared to the Nifty futures’ previous close of 21,510.
Both of the domestic benchmark rates fell about 1.3% in the holiday-shortened week past.
On January 25, the Sensex fell 359.64 points, or 0.51%, to 70,700.67, while the Nifty 50 ended 101.35 points, or 0.47%, lower at 21,352.60.
Nifty 50 formed a small negative candle on the daily chart with a small lower shadow.
Read also: Indian stock market: 7 key things that changed for market over the weekend – Gift Nifty, US GDP, inflation to oil prices
“The current chart pattern indicates a sell-on-rising opportunity in the market with volatility. Negative chart patterns such as lower tops and bottoms are intact and the recent high-level bounce in the market could be in line with another lower top formation. But the a bottom top reversal needs to be confirmed at the highs,” said Nagaraj Shetti, Chief Technical Research Analyst, HDFC Securities.
He believes that the near-term trend of Nifty remains weak with a weak bias and could face strong resistance around 21,500-21,600 levels in the coming sessions.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty Prediction
A tough battle unfolded in the market as the Nifty 50 remained highly volatile on Thursday.
“Sentiment may continue to lean towards the bears as the Nifty struggled to break above the 21,500 mark, where call writers had large positions. Looking ahead, the trend is likely to remain sideways, fluctuating in the range of 21,300 and 21,500,” said Rupak De, Senior Technical Analyst of LKP Securities.
He believes that a decisive breakthrough above 21,500 could push the index to 21,700 / 22,000 soon.
Read also: Buy or sell: Vaishali Parekh recommends three stocks to buy today — January 29
Bank Nifty Forecast
The Bank Nifty index ended lower on Thursday, closing 216 points lower at 44,866.
“The bulls successfully defended the crucial support level of 44,500, establishing it as a critical defensive line. If the index sustains above this support, a possible pullback to the resistance levels of 45,500 / 46,000 is anticipated soon,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
However, according to Shah, a break below this support on a closing basis could lead to further downward pressure, with the index targeting levels around 44,000 – 43,500.
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: 29 Jan 2024, 07:33 IST