The Indian stock market indices, Sensex and Nifty 50, are expected to open on a positive note on Saturday tracking an overnight rally on Wall Street.
The domestic equity market will have a normal trading session today, while the markets will remain closed on Monday, January 22.
On Friday, the benchmark indices witnessed a small high-level rebound after showing sharp weakness in the last two sessions.
The Sensex jumped 496.37 points, or 0.70%, to end at 71,683.23, while the Nifty 50 settled 160.15 points, or 0.75%, higher at 21,622.40.
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Nifty 50 formed a small positive candle on the daily chart with minor upper and lower shadow.
“Friday’s market action indicates the formation of a doji or high wave-type candlestick pattern (not classic). This reflects the ongoing pullback in the market. Friday’s top rebound could be an encouraging factor for bulls to return. But, provided that the sharp opening lower gap from Wednesday remains open at 21,970, there is a higher probability of selling increasing in the market for the near term,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Predictions
Following a strong start on January 19, the Nifty 50 remained sideways during the session and ended above 21,600 level.
“The index has moved back above the critical near-term moving average. Soon, the index is likely to consolidate within the bands of 21,500 and 21,700. A decisive break on either side would confirm a directional move,” said Rupak De, Chief Technical Analyst, LKP Securities.
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Bank Nifty Predictions
The Bank Nifty underperformed the frontline indices and ended 12 points lower at 45,701 on Friday.
“The Bank Nifty is currently witnessing a bearish trend, with bears exercising dominance from higher levels. The index is encountering strong resistance around the 46,300 mark, presenting a significant obstacle to any upward movement. An active put note indicates lower support at 45,500; however, a breach of this that level may intensify selling pressure,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Additionally, the index is trading below short-term moving averages, signaling a bearish sentiment in the current market scenario, he 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: 20 Jan 2024, 07:27 IST