The Indian stock market indices, Nifty 50 and Sensex, are expected to open on a cautious note on Wednesday amid weak global signals.
The trends on Gift Nifty indicate a slightly positive start for the Indian benchmark index. The Gift Nifty was trading around 22,265 level compared to the previous close of the Nifty futures of 22,232.
On February 20, the domestic equity indices settled higher, gains for the sixth consecutive session, with the benchmark Nifty 50 hitting its fresh record in intraday trade.
The Sensex gained 349.24 points to close at 73,057.40, while the Nifty 50 ended 74.70 points, or 0.34%, higher at 22,196.95.
Read also: Indian stock market: 8 key things that changed for the market overnight – Gift Nifty, US stocks fall on weak dollar
Nifty 50 has formed a long bull candle on the daily chart, signaling an attempt at a crucial upper break of the crucial upper resistance around 22,150 – 22,200 levels.
“Positive chart pattern like higher highs and higher lows continued on the daily chart and the current up move is in line with the new higher high formation. The short term trend of Nifty remains up,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities .
According to Shetti, a decisive move above 22,200 is likely to open a sharp upside to the upper trajectory of 22,500 – 22,600 levels soon.
Read also: Day trading guide for the stock market today: Nine stocks to buy or sell Wednesday — February 21
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Prediction
Nifty extended the gains for the sixth consecutive session on February 20 with the index again touching a fresh record in the last hour of trade.
“The Nifty continues its upward momentum after a consolidation break on the daily chart. The trend remains robust as it sustained itself both above the psychological level of 22,000 and the 21-EMA (Exponential Moving Average) in the daily time frame,” said Rupak De, Senior Technical Analyst, LKP Securities.
On the higher end, he expects, Nifty may move to 22,400 / 22,600 once the index decisively crosses the 22,200 mark. Support on the lower end is identified at 22,000.
Read also: Buy or sell: Vaishali Parekh recommends three stocks to buy today — February 21
Bank Nifty Forecast
The Bank Nifty index witnessed a strong upward momentum on Tuesday and the index surged over 559 points to close at 47,094 level.
“The Bank Nifty bulls maintained their dominance, closing above the 47,000 level, signaling a strong buying mode. Immediate support is now established at 46,700, marked by fresh writing. The index is expected to reach the short-term target of 48,000, with any decline seen as a buying opportunity,” said Kunal Shah, Senior Technical and Derivatives Analyst at LKP Securities.
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: 21 Feb 2024, 07:27 IST