India’s stock market indexes, the Sensex and Nifty 50, which fell sharply last week, are likely to open higher on Monday amid gains in global stocks.
The Gift Nifty trend also points to a strong start for the Indian benchmark index. Gift Nifty is trading near the 25,250 level, at a premium of nearly 60 points from the previous closing price of Nifty futures.
On Friday, the domestic stock benchmark index widened its losses for five consecutive sessions, ending almost 1% lower.
The Sensex fell by 808.65 points or 0.98% to close at 81,688.45, while the Nifty 50 fell by 235.50 points or 0.93% to close at 25,014.60.
The Nifty 50 formed a bearish candlestick on the daily chart with a long tail.
“The formation of a long upper whisker over the last three trades indicates a selling upside opportunity in the market.The Nifty 50 on the weekly chart is on the downside and has been a bullish candlestick for the past few weeks. It has formed a long bearish candlestick that has retraced the , which is a negative sign and a signal formation of a reversal pattern according to the smaller and larger time frame charts,” said HDFC Securities Senior Technical. said research analyst Nagaraj Shetty.
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According to Shetty, the short-term uptrend in the Nifty 50 has sharply declined and as it sits at the support around 25,000, a modest upward rebound is expected early this week, which could be seen as an upside opportunity. Sales are expected.
“A decisive move below the $25,000-$24,950 level could open up the next downside at $24,500 in the short term,” he added.
Here’s what you can expect from Nifty 50 and Bank Nifty today.
Nifty OI data
In terms of options data, significant open interest (OI) on the put side is centered around the 24,500 level, indicating strong support. On the call side, notable OI concentrations have been observed at the 25,400 and 25,500 levels, suggesting that these will act as resistance zones in the near term, said Mandar Borjan, Technical Research Analyst at Choice Broking. he said.
He advises traders to be cautious, maintain strict stop losses and avoid holding long positions overnight to reduce risks arising from market volatility.
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Nifty 50 prediction
The Nifty 50 continued its downward trend on October 4 due to high volatility, dropping 235 points.
“Nifty witnessed a bear attack for the second day in a row.Continued trading below key levels triggered a correction towards 25,000.Sentiment is very weak with higher levels as sell zone “On the lower end, the next support is seen at 24,750, while on the upper end, we see resistance at 25,300,” said Rupak De, senior technical analyst at LKP Securities.
VLA Ambala, co-founder of Stock Market Today, said the Nifty 50 has fallen nearly 5 per cent in the last five sessions, indicating a bearish outlook. The stock is trading in the overbought zone, with the RSI remaining above 80 for the month.
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“However, prices are starting to settle down on the daily chart. Considering the current market conditions, we recommend a ‘sell on the rise’ strategy until the Nifty 50 reaches the key support levels of 24,000-23,800. It also formed a bearish candlestick pattern on the weekly and daily time frames, with a high wave on the daily chart and a bearish round on the weekly chart,” Ambala said.
He expects the benchmark index Nifty to gain support in the 24,900-24,810 range and face resistance in the 25,170-25,300 range.
According to her, the current market valuations are not favorable for investors, which is why profit-taking activity is increasing, especially in the backdrop of global challenges in the Indian market.
bank nifty prediction
The Bank Nifty index ended 383.15 points or 0.74% lower at 51,462.05 on Friday, forming a bearish candlestick pattern.
“Bank Nifty showed some strength during the day on Friday session and briefly crossed the 52,000 level. However, the last hour of trading witnessed sharp declines across private banks, The index has fallen below 51,500.The short-term structure of Banknift is skewed and on the downside it could head towards 51,000-50,840 levels while on the upside it could head towards 51,000-50,840 levels.Sanctum Wealth Derivatives & “We will see strong resistance around the 52,000-52,150 levels,” said Aditya Agarwal, head of technical analysis.
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Dr. Praveen Dwarakanath, Vice President, Hedged.in, said Bank Nifty is finding support from the 20 EMA (exponential moving average) at 51,300 levels and a rebound from current levels is likely to come. He pointed out that it was short-lived.
“All momentum indicators are in oversold territory and that could also be the reason for a slight rebound from current levels. On the weekly chart, the Bank Nifty index closes well below the top of the Keltner channel. Data from options writers shows an increase in writing above the 51,500 level for both weekly and monthly expirations, opening the way for further declines next week. It shows continued weakness from the level,” Dwarakanath said.
Disclaimer: The views and recommendations above are those of individual analysts or brokerages and not of Mint. We recommend checking with a certified professional before making any investment decisions.
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