The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading around 22,221 level compared to the Nifty futures’ previous close of 22,222.
On Friday, the domestic equity indices traded in a narrow range and ended flat, despite the Nifty 50 touching a new high of 22,297 level during the day.
The Sensex shed 15.44 points to close at 73,142.80, while the Nifty 50 ended 4.75 points, or 0.02%, lower at 22,212.70.
Nifty 50 formed a small negative candle on the daily chart at the new highs.
“Nifty is currently placed at the previous broken resistance area of 22,200 levels. Failing to continue with a strong move at new highs, the market could shift to further consolidation or minor weakness in the coming week,” said Nagaraj Shetti, Chief Technical Research Analyst, HDFC Securities.
On the weekly chart, Nifty 50 formed a small positive candle with a minor upper and lower shadow, which indicates a high wave type candle formation at the swing highs.
Read also: Indian stock market: 7 key things that changed for the market overnight – Gift Nifty, Nikkei’s record to FPI flows
“But, having shifted to a wider range in the last month, the predictive value of this pattern could be less. The near-term uptrend of Nifty remains intact. Having faced hurdles at 22,250 – 22,300 levels, there is a possibility of a minor downside in the market this -per week and that could be a buy on dips,” Shetti said.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Prediction
The Nifty 50 remained range bound and closed flat with a negative bias on February 23.
“Nifty opened higher but failed to sustain the morning momentum, leading to a close at the day’s low due to profit booking. However, sentiment remained positive for the short term as the index closed above the crucial resistance level of 22,200, with the next resistance seen at 22,400. Short-term support is positioned at 21,900,” said Rupak De, Chief Technical Analyst, LKP Securities.
He believes that as long as Nifty 50 maintains levels above 21,900, the index can continue to be considered a buy on dips.
Read also: Buy or sell: Vaishali Parekh recommends three stocks to buy today — February 26
Bank Nifty Forecast
The Bank Nifty declined 108 points to close at 46,812 on February 23, continuing the downward trend for the third consecutive session.
“The Bank Nifty index has maintained its robust momentum, passing the 46,500 level, which is now established as an impressive support. Any retracement to this support zone presents an ideal opportunity to initiate long positions, targeting a rise of 48,000,” said Kunal Shah, Senior Technical and Derivatives Analyst at LKP Securities.
According to him, the immediate obstacle for the index is located at 47,100, and a final break above this level would mean a resumption of the upward trend towards the aforementioned targets of 48,000.
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: 26 Feb 2024, 07:29 IST