Indian Stock Market Trends: Gift Nifty Indicates Positive Start for Benchmark Index
As the Indian stock market continues to navigate through choppy waters, the trends on Gift Nifty are indicating a mildly positive start for the benchmark index. The Gift Nifty was seen trading around the 22,460 level, showing a premium of over 10 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity benchmark indices ended the session flat with a positive bias. The Sensex gained 165.32 points, or 0.22%, to close at 73,667.96, while the Nifty 50 inched 3.05 points, or 0.01%, higher to settle at 22,335.70.
According to market experts, the Nifty 50 formed a neutral candlestick pattern on the daily chart after a bearish engulfing, signaling ongoing bearish pressure in the market. Deepak Jasani, Head of Retail Research at HDFC Securities, mentioned, “The bearish Evening star pattern formed in the previous session has not yet been negated. Nifty could now stay in the 22,224 – 22,526 band for the near term. Adverse breadth data is weighing on the minds of investors and traders.”
Analyzing the Open Interest (OI) data, Mandar Bhojane, Research Analyst at Choice Broking, noted that the call side displayed the highest OI at 22,500, followed by 22,600 strike prices. On the put side, the highest OI was observed at the 22,000 strike price.
Looking ahead, market experts provided insights on what to expect from Nifty 50 and Bank Nifty. Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, stated, “The formation of a doji candle suggests indecisiveness at current levels, and a breakout on either side could lead to trending moves. The immediate resistance for Nifty is at 22,500, and a break above this on a closing basis would signal a resumption of the upward movement.”
Rahul Ghose, CEO of Hedged.in, highlighted the creation of short straddles at the 22,500 levels for the Nifty 50 index, indicating an expected range for the monthly expiry. Meanwhile, Shah emphasized the importance of waiting for key levels for entry amid Tuesday’s knee-jerk reactions on both sides.
In terms of Bank Nifty, Shah mentioned, “The Bank Nifty index maintains a ‘buy on dip’ stance as long as the mentioned support levels are held.” The index fell 45 points to close at 47,282 on Tuesday, experiencing extreme volatility but managing to hold the support of the 20-DMA at the 46,800 mark.
As investors navigate through the market uncertainties, it is essential to stay informed and seek advice from certified experts before making any investment decisions. Stay tuned for more updates on the Indian stock market trends and market predictions.
