The Indian benchmark index is off to a good start, according to Gift Nifty’s tendencies. The Gift Nifty was trading at a premium of around 60 points from the previous closing of the Nifty futures, at 22,690.
Sensex and Nifty 50, the key indices of the Indian stock market, are anticipated to open stronger on Friday based on a number of signals from the global markets.
The Indian benchmark index is off to a good start, according to Gift Nifty’s behaviors. The Gift Nifty was trading at a premium of around 60 points from the previous closing of the Nifty futures, at 22,690.
During monthly F&O expiry on Thursday, the domestic equities indices saw a sharp drop in closing prices, continuing losses for the sixth consecutive day.
A dip of 617.30 points saw the Sensex close at 73,885.60, while the Nifty 50 finished 2.15% lower at 22,488.65.
On a daily timescale, the Nifty 50 created a bearish candlestick pattern with upper and lower shadows.
The daily chart shows a weakening of the uptrend. The Nifty ended Thursday’s trading session lower than its previous swing high of 22,795. The 14-day RSI is still below the 9-day EMA at 51.1 and is declining. It appears that momentum has disappeared from this. Despite this, Nifty is still above the 20 and 50 day SMA, according to HDFC Securities Senior Technical/Derivative Analyst Subash Gangadharan.
The Nifty has recovered from its recent close to the 50-day SMA, but continuing to decline. Gangadharan says that this creates the chance of an additional resurgence in the upcoming sessions.
For the bulls to take the lead, the Nifty would need to overcome the immediate resistance level of 22,706.” Important levels of support to keep an eye on in case weakness resumes are 22,417–22,387. As the election results come closer to being announced, the markets are probably going to be unpredictable in the upcoming sessions,” he continued.
What to anticipate from Bank Nifty and Nifty 50 today is as follows:
Good OI Information
The biggest Open Interest (OI) on the call side is noted at the 23,000 strike price, followed by the 23,500 strike price, based on the Nifty OI data. The largest OI on the put side is at the 22,000 strike price, according to Choice Broking Research Analyst Mandar Bhojane.
Nifty 50 Forecast
On May 30, the Nifty 50 index closed 216 points below the 22,500 mark.
The Nifty has been unstable throughout the session, mostly moving in a bearish direction. Given that the index fell below the crucial 21-day Exponential Moving Average (21-EMA), the short-term outlook is still negative. At 22,500, call writing activity was noteworthy. Thus, the Nifty must remain above 22,500 in order to see a significant recovery, according to Rupak De, Senior Technical Analyst at LKP Securities.
But if the index doesn’t rise beyond 22,500, he says, the market may start selling again, which may push it towards 22,300 or 22,100.
Forecast for the Bank Nifty
On Thursday, the Bank Nifty index surpassed the Nifty 50 and closed 181 points higher at 48,682. It created a negative candle with good volume on the daily chart, suggesting that the market would continue to experience bearish pressure.
“Bank Nifty found support close to its 21-day EMA after opening with a gap downward and closed with a bullish candlestick. A rise in large-cap private bank stocks helped to maintain the index’s positive trend. Bank Nifty’s crucial support level is 48,300, while 49,000 represents strong resistance, according to De.
Once these levels are crossed, a decisive action is expected, he continued.
