The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 21.40 level compared to the previous close of the Nifty futures of 22,025.
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On Tuesday, the frontline indices ended lower, snapping their five-day winning streak amid negative global signals.
The Sensex declined 199.17 points to close at 73,128.77, while the Nifty 50 settled 65.15 points, or 0.29%, lower at 22,032.30.
Nifty 50 formed a small negative candle on the daily chart with minor upper and lower shadow.
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“Technically, this pattern indicates the formation of a high wave-type candlestick pattern. Such formations next to Monday’s long bull candlestick signal a consolidation movement in the market, after the recent sharp high-level breakout,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
Although, Nifty took a breather on Tuesday, there is still no indication of any significant reversal pattern developing at the highs. Shetti added that the current consolidation is not expected to impact the market’s near-term bullish status and the upward momentum is likely to resume from the lower supports soon.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty Open Interest Data
Coming to the OI Data, Deven Mehata, Research Analyst at Choice Broking noted that on the call side, the highest OI was observed at 22,100 followed by 22,200 strike prices while on the put side, the highest OI was at 22,000 strike price .
Read also: Day trading guide for today: Six stocks to buy or sell Wednesday — January 17
Nifty 50 Predictions
The Nifty 50 touched a fresh all-time high at 22,124 and witnessed minor profit booking to end lower on Tuesday, snapping a five-day winning streak.
“The Nifty index experienced a day of mixed market dynamics, with bulls dominating the first half and bears taking control in the second half. For a sustained climb to 22,300 levels, the index needs to decisively break above the 22,150 mark,” said Kunal Shah , Senior Technical and Derivatives Analyst, LKP Securities.
According to Shah, on the downside, the immediate support lies at 21,950, and a clear break below this level could trigger further corrections towards the 21800 mark.
Read also: Buy or sell: Vaishali Parekh recommends buying these three stocks today – January 17
Bank Nifty Predictions
The Bank Nifty index closed 33 points lower at 48,125 on January 16.
“The Bank Nifty index has shown a doji candle, signaling a struggle between bulls and bears in the current market scenario. To witness a continuation of the rally to 49,000/50,000, the index must continue above the crucial level of 48,300. Conversely, the immediate lower support lies in the 47,800-47,700 zone, and a conclusive break below this level could pave the way for further downside movements,” said Shah.
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: 17 Jan 2024, 07:43 IST