Nifty 50 and Sensex Today
The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher today. Strength in US futures ahead of US President Donald Trump's inauguration positively emboldens the global market trends, and with that, Gift Nifty hints at a higher opening. It continues trading near 23,290, that is nearly 23 points higher than the previous close of Nifty futures.
The domestic equity
market snapped a three-day gaining streak on Friday. The Sensex fell by 423.49
points at 0.55% while closing at 76,619.33. The Nifty 50 shed 108.60 points, or
0.47%, to settle at 23,203.20.
Technical Analysis of Nifty 50
The Nifty 50 formed a small negative candle on the daily chart, with a minor lower shadow indicating limited strength in the recent upward bounce. The opening downside gap from January 13 has acted as a significant hurdle, and last week's market action resulted in the formation of a Doji-type candle pattern on the weekly chart.
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities:
The short-term trend remains weak amidst range-bound movement.
Decisive upside above 23,400 will be required to reignite the buying enthusiasm.
Immediate support comes in at 23,100.
What to Expect from Nifty 50 Today:
Rupak De, Senior Technical Analyst at LKP Securities, has pointed out bearish sentiment at a key resistance level. The same is expected to continue unless the index is able to stay above 23,400.
- Support Levels: 23,000 and 22,800
- Resistance Levels: 23,350 and 23,420
A breakdown below 23,000 would start a bigger correction, and reversal of 23,400 can create buying again.
Master Trust Group Director Puneet Singhania observed:
The index is below the 21-week and daily EMAs. So, the overall trend is negative.
Capping of 23,200–23,300 supports may result in the fall further down to 22,800.
The sell will have
an opportunity when resistance will get hit.
Bank Nifty Outlook
Important takeaways from analysts:
Puneet Singhania said the index remained in the "sell-on-rise" mode. Two important resistance levels to keep an eye on are 48,900 and 49,500.
- Support Levels: 48,000 and 47,200
- Resistance Levels: 48,900 and 49,500
Hrishikesh Yedve, AVP Technical and Derivatives Research Asit C. Mehta Investment Intermediates Ltd.
On a daily basis, the big red candle formed indicates weakness is ongoing.
Key support lies at 47,900 while resistance is near the 250-Days Simple Moving Average (49,910).
The traders are
advised to sell on bounce unless the index sustains above 49,910.
Conclusion
Both Nifty 50 and Bank Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd. (A Pantomath Group Company) said that on a daily scale, Bank Nifty has formed a big red candle, which indicated weakness.
