Benchmark Indian stock market indices, Sensex and Nifty 50, are probably going to open lower as they follow unimpressive global trends.
The trends observed in Gift Nifty also suggest that the Indian benchmark index is off to a bad start. At a discount of around 100 points from the previous closing of the Nifty futures, the Gift Nifty was trading at roughly 23,385.
Due to profit booking, the main domestic equities indices closed the day lower on Friday.
Although the Nifty 50 finished 65.90 points, or 0.28%, lower at 23,501.10, the Sensex fell 269.03 points to conclude at 77,209.90.
A respectable negative candle with a slight lower shadow was formed by the Nifty 50 on the daily chart.
Technically speaking, this pattern suggests that a bearish engulfing pattern—rather than a traditional one is forming. But the notable reversal pattern is ruled out because the market has recently moved in a range. After generating similar doji/bearish engulfing patterns recently, the market has not declined substantially, according to HDFC Securities Senior Technical Research Analyst Nagaraj Shetti.
On the weekly chart, Nifty 50 created another tiny bearish candle with a slight upper and lower shadow. A bearish spinning top-type candle pattern may be about to form, according to this weekly pattern. However, Shetti noted that a continuation of the weakening in the next week would validate this bearish trend.
Based on his assessment, the Nifty’s short-term trend is range-bound and has a weak bias. A break below the market’s immediate support, which is located between 23,300 and 23,250, could, nevertheless, signal the start of a brief decline.
What can we anticipate from Bank Nifty and Nifty 50 today:
Nifty Fifty Forecast
The Nifty 50 ended the day down 65 points on June 21 after continuing its erratic and highly volatile behavior. At 23,667 points throughout the session, the index reached a new all-time high.
The fact that Nifty has been trading between 23,300 and 23,600, a sign of indecision, is likely to create an extremely volatile monthly expiry. In the medium term, a strong move over 23,600 would push the index beyond 24,000, while a breakdown below 23,300 might send the market into a panic,” said Rupak De, Senior Technical Analyst at LKP Securities.
He thinks the Nifty could short-term fall to 22,750 below 23,300.
Forecast for the Bank Nifty
On Friday, the Bank Nifty finished 122 points lower at 51,661 level, forming a bearish candlestick pattern on the daily charts that included the Hanging Man pattern. The Bank Nifty index gained over 3% for the week, marking its longest winning run in 19 months and its sixth consecutive week of advances.
“Despite a tumultuous trading session, the Bank Nifty index concluded flat, emphasizing the obvious struggle between buyers and sellers. The largest open interest on the call side is accumulated at 52,000, which is the immediate resistance. To continue rising, the index must cross this threshold, according to Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Shah claims that the lowest support level on the downside is situated at 51,000, the point at which the put side’s open interest is at its strongest. Shah went on to say that dips near this support level could be seen as a perfect time to buy.
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