Despite encouraging global cues, both market benchmark indices closed Tuesday’s trading session in the red.
In the upcoming days, more deterioration is expected, which might drive the Bank Nifty index closer to 47,700. Due to the impending general elections, it is anticipated that the Indian stock market indices, the Sensex and Nifty50, will continue to fluctuate on Wednesday.
Nonetheless, the patterns of Gift Nifty point to a positive start for the benchmark Indian index. Presently, Gift Nifty is trading at about 22,432; this is a premium of about 39 points over the last Nifty futures close.
Despite encouraging global cues, both market benchmark indices closed Tuesday’s trading session in the red.
With a loss of 384 points, or 0.52 percent, the Sensex finished the trading day at 73,511.85. In a similar vein, the Nifty 50 finished at 22,302.50, down 140 points, or 0.62 percent, with 34 equities seeing losses. The Nifty 50 index has now experienced losses for three straight sessions.
On the daily chart, a lengthy negative candle pattern with a slight lower shadow developed. This market’s behaviour suggests that the market is still correcting down. According to the daily chart, we have seen overlapping negative candles on the downward over the past several sessions, indicating that there hasn’t been any strong selling momentum in the market.
The daily chart’s lower tops and bottoms are still there, and the current weakening might be consistent with the pattern’s newly formed higher bottom. A rebound back up from the lows is necessary to validate the higher bottom reversal. The 22,400 levels represent immediate resistance, and the 22,100–22,000 range is where the next lower levels should be observed, according to HDFC Securities Senior Technical Research Analyst Nagaraj Shetti.
What to anticipate from Bank Nifty and Nifty 50 today is as follows:
Good OI Information
Regarding the OI data, according to Choice Broking Research Analyst Deven Mehata, the greatest OI was recorded at 22,500 on the call side, followed by 22,600 strike prices, and at 22,000 on the put side.
Nifty 50 Forecast
With 34 stocks in the red, the Nifty50 finished Tuesday’s trading session 140 points lower at 22,302.50.
Technically, since the index dropped below the 21-EMA (Exponential Moving Average), the trend has deteriorated. The hourly chart shows a Head and Shoulders pattern, and the index is now holding below the neckline, indicating a bearish formation. As long as it stays below 22,400, more selling pressure is expected, perhaps reaching 21,980–22,000 in the near future, according to Rupak De, Senior Technical Analyst at LKP Securities.
Forecast for the Bank Nifty
On May 7, the Nifty Bank witnessed a 1.25 percent fall at the end of trading, while the Private Bank index had a 1.45 percent decline.
A head and shoulders pattern can be seen on the hourly chart, and the index has already broken below the neckline. In the upcoming days, more deterioration is expected, which might send the index closer to 47,700. On the upper end, resistance is seen at 48,800,” Rupak De.