The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 22,455 level, a discount of almost 122 points from the previous close of the Nifty futures.
On Tuesday, the domestic equity indices broke the three-day rally to finish lower amid weak global signals.
The Sensex fell 110.64 points to close at 73,903.91, while the Nifty 50 settled 8.70 points, or 0.04%, lower at 22,453.30.
Read also: Indian stock market: 8 key things that changed for the market overnight – Gift Nifty, Tesla sales fall on rising oil prices
Nifty 50 formed a small negative candle on the daily chart with small upper and lower shadows.
“Technically, this pattern signals the formation of a doji-type pattern. This is the back-to-back second such doji pattern in the last two sessions. The short-term trend of the Nifty remains positive. Although Nifty placed at the crucial upper resistance around 22,500 levels, however there is no confirmation of any reversal pattern developing at the highs,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
He believes that a decisive move above the hurdle of 22,500 – 22,600 levels could open higher soon.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
Analysis of the Nifty Open Interest (OI) data highlights the highest OI on the call at the 22,700 strike price, followed by the 22,800 strike price. On the put side, the highest OI was observed at the 22,300 strike price, said Mandar Bhojane, Research Analyst at Choice Broking.
Read also: Stock market today: Day trading guide for Nifty 50 to Sensex, seven stocks to buy or sell on April 3
Nifty 50 Prediction
The Nifty 50 index shifted into breathing mode on April 2 and closed the day lower by 8 points.
“The Nifty traded in a range after a flat start. The index formed back-to-back doji patterns on the daily chart, typically indicating a pause before the next move. However, sentiment remains positive, with the Nifty closing above the important moving average. Momentum also remains positive as indicated by the RSI in a bullish crossover,” said Rupak De, Chief Technical Analyst, LKP Securities.
In the short term, he believes that the trend is positive, with the potential to reach 22,650 – 22,700. Support is positioned at 22,350 – 22,300 on the lower end.
Read also: Buy or sell: Vaishali Parekh recommends three stocks to buy today – April 3
Bank Nifty Forecast
The Bank Nifty firmed and ended 33 points lower at 47,545 on Tuesday.
“The Bank Nifty index has maintained a narrow consolidation pattern in anticipation of the RBI policy. With bearish support at 47,000 and bearish resistance at 48,000, a break in either direction could trigger significant market moves,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities .
Despite the consolidation, the overall sentiment remains bullish, suggesting that dips should be viewed as buying opportunities, especially with immediate support around the 47,400 – 47,350 zone, Shah 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: 03 Apr 2024, 07:31 IST