The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading around 21,465.00 level compared to the Nifty futures’ previous close of 21,466.00.
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On Monday, domestic equity indices ended lower amid profit-booking after markets set a new high last week.
The Sensex declined 168.66 points to close at 71,315.09, while the Nifty 50 settled 38.00 points, or 0.18%, lower at 21,418.65.
Nifty 50 formed a doji type of candlestick pattern after a sideways move.
Read also: Indian stock market: 6 things that changed overnight – Gift Nifty to rising oil prices
“Zooming into the 15-minute charts, we can observe that the Nifty has made lower highs today and also closed below the 20-period Moving Average (MA). This is a weak signal for the very near term. Nifty could now test the 50-period MA currently at 21,388 in very near term,” said Subash Gangadharan, Senior Technical and Derivatives Analyst, HDFC Securities.
He believes the markets have taken a breather after the sharp rise seen last week. So any corrections are likely to be short-lived and can be used to buy quality stocks.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty Open Interest Data
Coming to the Open Interest (OI) data, on the call side, the highest OI observed at 21,500 followed by 21,600 strike prices while on the put side, the highest OI is at 21,300 strike price, noted Deven Mehata, Research Analyst at Choice Broking. .
Nifty 50 Predictions
The Nifty 50 has formed a Bearish Harami candlestick pattern on the daily chart, suggesting a possible disruption in the ongoing rally.
“Furthermore, the RSI indicator on the hourly timeframe experienced a bearish crossover within the oversold zone, suggesting diminishing bullishness in the market. A decline below 21,350 could lead to a correction to 21,220/21,100 soon,” said Rupak De, Senior Technical Analyst at LKP Securities.
On the contrary, he believes that the resistance is foreseen at 21,500 at the higher end.
Read also: Day trading guide for the stock market today: Six stocks to buy or sell Tuesday — December 19
Bank Nifty Predictions
The Bank Nifty index witnessed a pullback on December 18 and ended 276 points lower at 47,868.
“The Bank Nifty index has encountered resistance around the 48,000 level, resulting in an inability to sustain at those higher levels, leading to some selling pressure. The immediate support for the index is positioned at 47,800,” said Kunal Shah, Senior Technical & Derivative- analyst at LKP Securities.
A break below this level could intensify the selling pressure, possibly pushing the index towards the 47,400/47,000 marks, 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: 19 Dec 2023, 07:30 IST