The trends on Gift Nifty also indicate a hot start for the Indian benchmark index. The Gift Nifty was trading around the 22,091 level, a discount of nearly 15 points from the previous close of the Nifty futures.
On Thursday, the domestic equity indices closed with strong gains with the Nifty 50 settling above the 22,000 level.
The Sensex jumped 539.50 points to close at 72,641.19, while the Nifty 50 settled 172.85 points, or 0.79%, higher at 22,011.95.
Nifty 50 formed a small positive candle on the daily chart with small upper and lower shadows and also with gap opening.
“Technically, this pattern indicates a pullback in the market after a downward correction. Having negated the bullish pattern as higher tops and bottoms recently, the current pullback is expected to form a lower top in the next few sessions,” said Nagaraj Shetti, Chief Technical Research Analyst, HDFC Securities.
Read also: Indian stock market: 8 key things that changed for the market overnight – Gift Nifty, BoE policy to Accenture’s guidance cut
He believes that further upside from here could pull the Nifty 50 to the crucial upper resistance around 22,150 – 22,200 levels soon and any decline from here could drag the Nifty 50 down to 21,700 levels again soon.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
An analysis of the Nifty Open Interest (OI) data reveals the highest OI on the call at the 22,200 strike price, followed by the 22,500 strike price. On the put side, the highest OI is observed at the 21,800 strike price, said Mandar Bhojane, Research Analyst at Choice Broking.
Nifty 50 Prediction
The Nifty 50 index shifted to a decent following on March 21 and closed the day higher by 172 points, regaining the psychological 22,000 mark.
“The Nifty rallied following a Doji candlestick pattern on the daily chart, indicating a robust bullish reversal. Additionally, the index successfully recovered the crucial 50-day Simple Moving Average (SMA). Looking ahead, the Nifty could extend its gains to the range of 22,250 – 25,300. Moreover, a break above 22,300 may initiate a rally towards 22,500 and beyond,” said Rupak De, Chief Technical Analyst, LKP Securities.
He believes that the strategy of buying on dips will remain viable as long as the Nifty 50 maintains levels above 21,840.
Ruchit Jain, Lead Research at 5paisa.com believes that it is too early to say that the markets have bottomed based on one day movement and therefore, the next movement soon will be crucial to see.
“As of now, Nifty seems to be retracing the recent correction where markets halted its momentum around its initial resistance of 22,080. A move above this Thursday’s high could lead to a continuation of the move towards the 50% and the 61.8% rich levels, which are seen around 22,120 and 22,215. On the other hand, 21,800 will be the support level, which if broken, then it could lead to a decline to 21,500,” Jain said.
He advises traders to keep a tab on the upper levels and trade according to the momentum.
Read also: Buy or sell: Vaishali Parekh recommends three stocks to buy today — March 22
Bank Nifty Predictions
The Bank Nifty index rebounded and jumped 374 points to close at 46,685 on Thursday.
“The Bank Nifty remained volatile after a breakout start. Sentiment improved as the index broke out above the recent consolidation. On the daily chart, the index formed a slightly higher bottom, suggesting a declining decline,” said De.
In the short term, the index could move to 47,000; a decisive move beyond 47,000 might propel it to 47,700. Support is located at 46,300 on the lower end, he 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: 22 Mar 2024, 07:30 IST