The trends on Gift Nifty also indicate a slightly positive start for the Indian benchmark index. The Gift Nifty was trading around 22,460 level, a premium of more than 10 points from the previous close of the Nifty futures.
On Tuesday, the domestic equity benchmarks ended the spike session flat with a positive bias.
The Sensex gained 165.32 points, or 0.22%, to close at 73,667.96, while the Nifty 50 inched 3.05 points, or 0.01%, higher to settle at 22,335.70.
Read also: Indian stock market: 8 key things that changed for market overnight – Gift Nifty, US inflation to oil prices
Nifty 50 has formed a neutral candlestick pattern on the daily chart after bearish engulfing, signaling continued bearish pressure in the market.
“The bearish Evening Star pattern formed in the previous session has not yet been negated. Nifty could now remain in the 22,224 – 22,526 band for the near term. Negative data is weighing on the minds of investors and traders,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
Analyzing the Open Interest (OI) data, the call side showed the highest OI at 22,500, followed by 22,600 strike prices. On the put side, the highest OI was observed at the 22,000 strike price, noted Mandar Bhojane, Research Analyst at Choice Broking.
Read also: Buy or sell: Vaishali Parekh recommends three stocks to buy today – March 13
Nifty 50 Prediction
The Nifty 50 index ended flat at 22,336 on March 12 amid high volatility and formed a long leg doji candle.
“The Nifty index experienced a volatile trading session with an ongoing battle between the bulls and bears. The formation of a doji candlestick suggests indecision at current levels, and a break on either side could lead to trend moves. The immediate resistance for Nifty is at 22,500, and a break above this on a closing basis would signal a resumption of the upward movement,” said Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities.
On the contrary, Shah believes that the immediate support is positioned at 22,200 – 22,150, and support above this level could witness some recovery in the index.
Rahul Ghose, CEO, Hedged.in noted that the Nifty 50 index for this month’s expiry saw a good amount of short spreads created at the 22,500 levels.
“This means that the market participants expect the expiration to be between 22,000 and 22,900. Since 22,000 is a strong floor for the index, one should exit a long position near this level between 22,150 and 22,000 or after prices cross over and stabilize above the 22,500 level,” Ghose said.
Tuesday’s reaction from both sides is important to wait for important levels for entry and not try to chase prices, he added.
Read also: Stock market today: Day trading guide for Nifty 50 to Sensex, six stocks to buy or sell on Wednesday — March 13
Bank Nifty Forecast
The Bank Nifty index fell 45 points to close at 47,282 on Tuesday.
“The Bank Nifty index experienced extreme volatility but managed to hold the support of the 20-DMA (Daily Moving Average) at the 46,800 mark. A strong resistance is observed at the 47,800 level, and a break above this point would pave the way for all-time high levels,” Shah said.
According to Shah, the Bank Nifty index maintains a ‘buy on dip’ stance as long as the said support levels are held.
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: 13 Mar 2024, 07:17 IST