Indian stock market indices, Sensex and Nifty 50, are expected to open flat on Thursday amid mixed global market cues. The trends on Gift Nifty also indicate a flat start for the Indian benchmark index. On Wednesday, the domestic equity market ended with decent gains, with the benchmark Nifty 50 closing above the 22,100 level.
The Sensex rallied 526.01 points to end at 72,996.31, while the Nifty 50 settled 118.95 points, or 0.54%, higher at 22,123.65. Nifty 50 formed a small positive candle on the daily chart with a minor upper shadow.
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the market action indicates upside momentum in the market amidst range-bound action. The overall chart pattern of the market remains positive with range-bound action. However, any weakness from here could drag the Nifty down to 21,900 levels again.
Analysis of the Open Interest (OI) data reveals the highest OI on the call side at the 22,400 strike price, followed by the 22,500 strike price. On the put side, the highest OI was observed at the 22,000 strike price, said Mandar Bhojane, Research Analyst at Choice Broking.
The Nifty 50 index continued its upside momentum with range-bound action on March 27 and closed the day higher by 118 points. Rupak De, Senior Technical Analyst at LKP Securities, believes that Nifty 50 could potentially move towards 22,300 and beyond in the short term.
Jaykrishna Gandhi, Head – Business Development, Institutional Equities, Emkay Global Financial Services, expects major support for the Nifty around the 21,800 level while resistance is around 22,350 for the upcoming week. He also mentioned that the specific performance in stocks will play a crucial role in driving the market’s direction in the coming days.
The Bank Nifty index gained 186 points to close at 46,786 on Wednesday, forming a bullish candlestick pattern on the daily charts. Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, anticipates a sharp short-covering move towards the 48,000 mark if the index breaks above its 20-day moving average.
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