The trends on Gift Nifty also indicate a gap for the Indian benchmark index. The Gift Nifty was trading around 22,080 level, a premium of nearly 170 points from the previous close of the Nifty futures.
On Wednesday, the Indian stock market indices ended with small gains amid bouts of volatility supported by favorable global sentiment.
The Sensex gained 89.64 points, or 0.12%, to close at 72,101.69, while the Nifty 50 settled 21.65 points, or 0.1%, higher at 21,839.10.
Nifty 50 formed a small body candle on the daily chart with upper and lower shadows.
“Technically, this pattern indicates the formation of a doji-type candlestick pattern. Normally, a doji after a reasonable up move or a down move requires imminent trend reversals. Having formed a doji after a minor downtrend, the chance of a minor pullback rally is likely,” said Nagaraj Shetti, Principal Technical Research Analyst, HDFC Securities.
A small degree positive chart pattern such as higher tops and bottoms have been negated recently on the daily chart. Therefore, any upside bounce from here is expected to be a lower top formation in the near term, he added.
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According to Shetti, the near term trend of Nifty 50 remains weak. A further upward move from here could find a strong upper resistance around 22,150 – 22,200 levels in the next few sessions and this is likely to be a selling opportunity.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
An examination of the Nifty Open Interest (OI) data reveals the highest OI on the call side at the 22,000 strike price, followed by the 22,300 strike price. On the put side, the highest OI was observed at the 21,500 strike price, said Mandar Bhojane, Research Analyst at Choice Broking.
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Nifty 50 Prediction
Nifty 50 shifted into a consolidating movement amid volatility on March 20 and closed the day higher by 21 points.
“The index remained volatile ahead of the US Federal Reserve’s policy meeting. The overall sentiment remains negative as the index closed below the previous consolidation low. Additionally, the index ended the session below the critical moving average. However, further decline is expected below the recent swing low on the hourly chart, which is positioned around 21,700,” said Rupak De, Chief Technical Analyst, LKP Securities.
On the higher end, resistance is placed at 21,900 – 22,000, he added.
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Bank Nifty Forecast
The Bank Nifty index ended 74 points lower at 46,311 amid volatility on Wednesday.
“The Bank Nifty faced another round of volatility, with the ongoing struggle between bulls and bears continuing, especially ahead of the US Fed meeting. Key support lies within the 46,000 – 45,800 zone, and maintaining these levels on a closing basis suggests continued bullish stance,” said Kunal Shah, Senior Technical and Derivatives Analyst at LKP Securities.
According to Shah, immediate resistance is positioned at 47,000, coinciding with the 20-DMA (Daily Moving Average), and a decisive close above this level could reignite the uptrend, targeting levels around 48,000 – 48,500.
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: 21 Mar 2024, 07:29 IST