The trends on Gift Nifty also indicate a slightly positive start for the Indian benchmark index. The Gift Nifty was trading around 21,861 level compared to the previous close of the Nifty futures of 21,830.
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On Monday, the domestic benchmark indices hit a new high, but witnessed profit booking at higher levels, ending flat with a positive bias.
The Sensex gained 31.68 points to close at 72,271.9, while the Nifty 50 ended 10.50 points, or 0.05%, higher at 21,741.90.
Nifty 50 formed a small body of positive candles on the daily chart with upper and lower shadows. Technically, this pattern indicates the formation of a high wave-type candlestick pattern and this indicates high volatility in the market at the highs.
“The positive chart pattern like higher tops and bottoms is intact on the daily chart and Nifty is currently forming a new higher top of the sequence. However, there is no confirmation of any peak reversal pattern in the high market,” said Nagaraj Shetti, Principal Technical Research Analyst, HDFC Securities.
Read also: Indian stock market: 6 things that changed for the market overnight – Gift Nifty, rising oil prices to stable dollar
He believes that Nifty’s near-term bullish status remains intact. However, the market has started to exhibit high volatility around the new highs, which signals chances of another round of downward correction from the highs.
“A decisive move above 21,850 levels is expected to nullify the current bearish effect and this could open up more upside for the near term,” Shetti said.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty Open Interest Data
On the call side, the highest OI is observed at 22,000 followed by 21,800 strike prices while on the put side, the highest OI is at 21,700 strike price, said Deven Mehata, Equity Research Analyst at Choice Broking.
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Nifty 50 Predictions
Nifty 50 remained volatile during the session on January 1 as traders remained indecisive.
“On the hourly chart, the Nifty fell below 20 DMA on an intraday basis before closing on a positive note. Going forward, a decisive fall below 21,650 could call for a directional fall in the market,” said Rupak De, Chief Technical Analyst at LKP Securities.
On the higher end, he believes, a close above 21,750 could take the index to the higher levels.
Read also: Buy or sell: Vaishali Parekh recommends three stocks to buy today — January 2
Bank Nifty Predictions
The Bank Nifty fell by 58 points to end at 48,234 on January 1.
“The Bank Nifty has fallen below 20DMA on the hourly chart, suggesting diminishing bullishness. The sentiment could remain weak in the near term, however, immediate support is placed at 48,000, where put writers are heavily present. A decisive fall below 48,000 could take the index to 47,700/47,500, ” said De.
On the higher end, 48,300 is a major level of resistance and bullish momentum could resume only above that level, 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: 02 Jan 2024, 07:40 IST