2 weeks Ago
Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a flat note Tuesday amid mixed global market cues. The trends on Gift Nifty also indicate a flat-to-positive start for the Indian benchmark index. The Gift Nifty was trading around 24,360 level, a premium of nearly 10 points from the Nifty futures’ previous close.
On Monday, the domestic equity market indices ended with strong gains, with the Nifty 50 above 24,300 level. The Sensex rallied 602.75 points, or 0.
76%, to close at 80,005.04, while the Nifty 50 settled 158.35 points, or 0.
65%, higher at 24,339.15. Nifty 50 formed a high wave type candle after a fall hinting at the start of an upward correction.
“The daily chart reveals a 'Spinning bottom' pattern, indicating indecision; however, the oversold momentum indicators suggest strong support around 24,100 and 24,000 as we approach monthly expiry and a festive week. On the upside, immediate resistance is seen at 24,600, the 89 DEMA, while a confluence of the 50 DEMA and 20 DEMA around 24,800 presents a significant hurdle,” said Rajesh Bhosale, Equity Technical Analyst, Angel One. He anticipates prices will likely trade within this range during the truncate week.
As the results season continues to unfold, individual stocks and specific themes are expected to drive the market. Here’s what to expect from Nifty 50 and Bank Nifty today: Nifty OI Data On option front, Maximum Call Open Interest (OI) is at 25,000 then 24,500 strike while Maximum Put OI is at 24,000 then 23,500 strike. Call writing is seen at 24,800 then 24,500 strike while Put writing is seen at 24,000 then 24,300 strike.
Option data suggests a broader trading range in between 24,000 to 24,800 zones while an immediate range between 24,100 to 24,600 levels, said Chandan Taparia, Head – Equity Derivatives and Technicals, Wealth Management, MOFSL. Nifty 50 Prediction Nifty 50 witnessed a pullback rally and closed 158 points higher on October 28, snapping a five–day losing streak. “Nifty 50 gave a dead cat bounce from its support of 24,100 levels.
Immediate resistance for the index is at 24,500 levels, a close above which can take Nifty 50 towards 24,800 levels. However, on the weekly chart, the momentum indicators continue to show weakness in the index. Monday’s bounce in the index can be used as an opportunity to sell with a target of 23,700 levels which is the next support below 24,100 levels,” said Dr.
Praveen Dwarakanath, Vice President of Hedged.in. According to him, options writer's data for the monthly expiry showed increased writing of calls at 24,500 and above levels, indicating resistance at 24,500 level in the index.
Aditya Agarwal, Head of Derivatives & Technical Analysis at Sanctum Wealth noted that most of the technical indicators are still in oversold zone and ahead of monthly expiry markets can see further short covering moves that can take Nifty towards 24,500 / 24,640 levels. “However, overall short to medium term momentum remains weak and this kind of short covering move can be used to reduce trading long exposure. On the lower side, 24,070 / 23,920 will act as an immediate support zone for the index,” said Agarwal.
Meanwhile, considering the current market conditions, VLA Ambala, Co-Founder of Stock Market Today suggests that traders maintain a diversified and hedged portfolio. “As the monthly expiry approaches, Nifty is expected to close between 24,850 and 24,530, with the RSI standing at 33 on the daily, 51 on the weekly, and 69 on the monthly chart. A ‘sell on rise’ approach would be appropriate in these situations.
However, traders interested in the benchmark index can wait for further dips before investing,” said Ambala. The prevailing market conditions suggest that Nifty could find support near 24,210 and 24,000 with resistance at 24,455 and 26,500, she added. Bank Nifty Prediction Bank Nifty gained 471.
85 points, or 0.93%, to close at 51,259.30 on Monday, forming a bullish candlestick pattern on the daily charts.
Bank Nifty failed to sustain above 51,500 levels and saw profit booking that shed some of the early gains. On the lower side, Bank Nifty will continue to see strong support around 51,000 / 50,800 levels. A move above 51,500 can trigger short covering in the Bank Nifty index and in that scenario it can move towards 51,840 / 52,200 levels,” said Agarwal.
According to Dwarakanath, the momentum indicators on the weekly charts continue to show weakness in the Bank Nifty index. “Monday’s bounce can be used as an opportunity to sell at the present levels for an immediate target of 50,500 levels. Immediate resistance for the index is at 52,000 levels.
Options writer's data showed writing calls above 52,000 levels, indicating resistance at higher levels in the index,” he said. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
.
