The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around the 22,820 level, a premium of nearly 85 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity benchmark indices failed to sustain all intraday gains to end marginally lower amid profit booking at record-high levels.
The Sensex fell 58.80 points to close at 74,683.70, while the Nifty 50 index settled 23.55 points, or 0.1%, lower at 22,642.75.
Nifty 50 formed a small negative candle on the daily chart at the new all-time highs.
“Technically, this pattern indicates tiredness for the market at the new highs. Nifty is currently placed near the crucial overhead resistance of the ascending resistance line and also important Fibonacci extension around 22,750 – 22,800 levels,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
Though Nifty placed at new highs and showing consolidation, still there is no confirmation of any significant top reversal pattern forming at the highs. At the same time, the upper area of 22,750 – 22,800 is expected to be a crucial overhead resistance for the short term, he added.
Also Read: Indian stock market: 7 key things that changed for market overnight – Gift Nifty, US Treasury yields to oil prices
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
Analyzing the Nifty Open Interest (OI) data, the call side showed the highest OI at the 22,800 level, followed by the 23,000 strike prices. On the put side, the highest OI was observed at the 22,500 strike price, said Mandar Bhojane, Equity Research Analyst at Choice Broking.
Nifty 50 Prediction
The Nifty 50 index slipped into a minor decline amidst volatility on April 9 and closed the day lower by 23 points.
“Nifty opened higher but struggled to withstand the selling pressure at elevated levels. On the hourly chart, the RSI (14) indicates a bearish divergence, signaling a potential shift in price momentum towards the downside. Immediate support is observed at 22,600; a decisive drop below this level could drive the index towards 22,400,” said Rupak De, Senior Technical Analyst, LKP Securities.
Conversely, according to him, resistance is evident at 22,770 on the higher end.
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Bank Nifty Prediction
The Bank Nifty index rallied 149 points to end at a fresh closing high of 48,731 on Tuesday, extending gains for the fifth consecutive session.
“The Bank Nifty demonstrated resilience at higher levels by surpassing the 49,000 mark intraday. It finds support at 48,000, coinciding with significant open interest in put options. Sustained closure above 49,000 could propel the index towards 50,000,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
With a bullish undertone prevailing, downturns are seen as buying opportunities for the index, Shah added.
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.
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Published: 10 Apr 2024, 07:30 AM IST