The trends on Gift Nifty also indicate a hot start for the Indian benchmark index. The Gift Nifty was trading around 21,765 level compared to the Nifty futures’ previous close of 21,785.
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On Friday, the domestic benchmark equity indices ended with gains for the second consecutive session with the Nifty 50 holding above 21,700 level.
The Sensex closed 178.58 points higher at 72,026.15, while the Nifty 50 settled at 21,710.80, up 52.20 points, or 0.24%.
Nifty formed an identical open and close pattern on Friday (with an upper margin of 5 points), which indicates a type of doji pattern at the highs (not classic).
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“Normally, doji formations at the high bids require caution for long. But, the formation of this pattern in the middle of a range movement, therefore the sharp negative implication cannot be expected. The short-term bullish status of Nifty remains intact, but the market is likely will find resistance around 21,800-21,850 levels in the coming sessions,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
He believes that a decisive move only above 21,850-21,900 levels could open the next high level target of 22,200 levels.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Predictions
Nifty 50 is likely to remain volatile and expected to consolidate going forward.
“Following a quick bounce from its positional support at 21,500, bullish activity has resumed in the market, with buying interest evident on dips. The prevailing sentiment is bullish, but Nifty is meeting initial resistance at 21,750, facing selling pressure. Immediate support remains at 21,600, ” said Kunal Shah, Senior Technical and Derivatives Analyst at LKP Securities.
According to Shah, a conclusive close above 21,750 levels could propel Nifty 50 towards the 22,000 mark, signaling further upward movement.
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Bank Nifty Predictions
The Bank Nifty index ended a volatile session 37 points lower at 48,159 on January 5.
“Showing a robust recovery from the 47,500 support level, Bank Nifty is showing active bullish activity, rebounding from the 14-day moving average support at 47,800. A close above 48,200 is crucial as it could propel the index towards 48,500 and 48,800 levels,” said Shah.
The immediate support for Bank Nifty stands at 47,800, indicating a key level to monitor 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: 08 Jan 2024, 07:41 IST