Indian stock market indices, Sensex and Nifty 50, are expected to open flat on Thursday amidst mixed global market cues. The trends on Gift Nifty also indicate a flat start for the Indian benchmark index, with the Gift Nifty trading around 22,173 level, a premium of nearly 6 points from the Nifty futures’ previous close.
On Wednesday, the domestic equity market ended with decent gains, with the benchmark Nifty 50 closing above the 22,100 level. The Sensex rallied 526.01 points to end at 72,996.31, while the Nifty 50 settled 118.95 points, or 0.54%, higher at 22,123.65. Nifty 50 formed a small positive candle on the daily chart with a minor upper shadow.
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the market action indicates upside momentum in the market amidst range-bound action. The overall chart pattern of the market remains positive, with Nifty currently placed at the upper range of 22,200 levels. A decisive break above this hurdle is expected to bring sharp upside momentum towards new all-time highs. However, any weakness from here could drag the Nifty down to 21,900 levels again.
Analysis of the Open Interest (OI) data reveals the highest OI on the call side at the 22,400 strike price, followed by the 22,500 strike price. On the put side, the highest OI was observed at the 22,000 strike price, according to Mandar Bhojane, Research Analyst at Choice Broking.
The Nifty 50 index continued its upside momentum with range-bound action on March 27, closing the day higher by 118 points. Rupak De, Senior Technical Analyst at LKP Securities, believes that the short-term momentum appears positive, and Nifty 50 could potentially move towards 22,300 and beyond in the short term.
Jaykrishna Gandhi, Head of Business Development at Emkay Global Financial Services, expects major support for the Nifty around the 21,800 level, with resistance around 22,350 for the upcoming week. He emphasizes that the specific performance in stocks will play a crucial role in driving the market’s direction in the coming days.
In terms of Bank Nifty, the index gained 186 points to close at 46,786 on Wednesday, forming a bullish candlestick pattern on the daily charts. Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, anticipates a sharp short-covering move towards the 48,000 mark if the index breaks above its 20-day moving average at 46,950. However, he notes that the index finds support around the 46,500 – 46,400 zone, and a breach below this level could lead to increased selling pressure.
Investors are advised to check with certified experts before making any investment decisions.
