Sensex and Nifty 50: In response to conflicting global indications, the key Indian stock market indices, the Sensex and Nifty 50, are probably going to open flat on Tuesday.
The Indian benchmark index appears to be off to a flat to positive start based on Gift Nifty’s patterns. The Gift Nifty was trading at a premium of around 20 points from the previous closing of the Nifty futures, at roughly 23,020.
The major domestic equities indices reached new highs on Monday, but they concluded the day unchanged.
The Nifty 50 closed 24.65 points, or 0.11%, lower at 22,932.45, while the Sensex fell 19.89 points to conclude at 75,390.50.
On the daily charts, the Nifty 50 displayed a bearish candlestick pattern at the all-time high level, suggesting profit booking.
The negative closing from yesterday appears to be more of a reprieve following the recent strong increase. The 20- and 50-day SMAs are still above the Nifty. It is positive to see that the 14-day RSI, at 66.63, is increasing and not overbought. According to HDFC Securities’ Senior Technical/Derivative Analyst Subash Gangadharan, “We anticipate more gains and new all-time highs in the upcoming sessions leading up to the election results, but we’re still open to volatility swings in the very near term.
It is important to keep an eye out for additional weakening at 22,908–22,871, he says.
What Nifty 50 and Bank Nifty can expect today is as follows:
Nifty OI Data
The Nifty put options analysis indicates that there is a concentration of Open Interest (OI) at the 22,700 level, suggesting that this level may provide support. According to Mandar Bhojane, a research analyst at Choice Broking, notable OI concentrations are seen at the 23,200 and 23,500 levels on the call side.
The larger call open interest (OI) build up at 23,100 and above, according to Rahul Ghose, CEO of Hedged.in, suggests limited upside. The PCR touched 1.09 in the middle of the trading session but was unable to hold above 1.09; in the final hour of trading, it fell to 0.88. He stated that the main cause of the decline in the PCR and the Nifty 50 index was an increase in VIX.
Nifty 50 Forecast
On May 27, the Nifty 50 index saw record highs during the day before closing nearly flat in a wild session. At 22,932.45, the index finished 0.11%, or 24.7 points, down.
In the day, Nifty largely fluctuated as India awaited the conclusion of the general election. The indicator is still above the key moving averages, indicating that the short-term outlook is still favorable. Support is located at 22,900; if this level is reached, the index may decline to 22,800. Bears are active between 23,000 and 23,050 on the higher end, according to Rupak De, Senior Technical Analyst at LKP Securities.
He stated that a clear break over 23,050 might lead to a more robust advance to higher levels.
Although the market is showing optimistic patterns, according to V.L.A. Ambala, co-founder of Stock Market Today (SMT), it is now overpriced. Therefore, one should anticipate seeing a correction shortly.
A shift in price movement like this would present traders with a profitable opportunity. If they have a short-term outlook, they should think about holding onto their positions and look for quality companies to take advantage of possible downturn opportunities. In a similar vein, investors with long- to mid-term perspectives ought to think about booking some profits, according to Ambala.
According to her, Nifty could encounter resistance between 22,970 and 23,050 points and receive support around 22,920, 22,845, and 22,790 points.
Bank Nifty Forecast
On Monday, the Bank Nifty index formed a bullish candlestick pattern with a lengthy upper shadow on the daily charts, rising 310 points to close at 49,281.
“Bank Nifty made a new high of 49,600 after encountering selling pressure in the vicinity of 49,600 and 49,800, after opening above the 49,000 resistance mark. Strong support is indicated at this level by significant put writing at the 49,000 strike price. Bank Nifty might reach 50,000 if it closes over 49,600, according to De.
He went on to say that the mood was generally positive and suggested using a buy-on-dip strategy with a stop loss at 48,900.
(Disclaimer: Businessuncover does not endorse the opinions or suggestions expressed above; rather, these represent the opinions of certain analysts or broking firms. It is recommended that investors consult with qualified specialists prior to making any financial decisions.)
