The Indian benchmark index is off to a bad start, according to Gift Nifty’s statistics. The Gift Nifty was trading at about 22,950, which was about 50 points below the previous close of the Nifty futures.
The Nifty 50 ended over 22,900 on Thursday, marking a record high for the domestic equities benchmarks.
The Nifty 50 closed 369.85 points, or 1.64%, higher at 75,418.04, while the Sensex surged 1,196.98 points, or 1.61%, to conclude at 22,967.65.
On the daily charts, the Nifty 50 displayed a lengthy bullish candlestick pattern, indicating significant buying interest.
The positive MA crossover is still present because the 20-period moving average (MA) is still above the 50-period MA. This suggests that the short-term rise will hold. Nifty is holding above the 20-day and 50-day SMA on the daily chart, which is a sign of strength. It’s promising that the 14-day RSI at 68.23 is increasing and not overbought, according to HDFC Securities Senior Technical/Derivative Analyst Subash Gangadharan.
He continued, “We remain open to short-term consolidations, even as we expect further upsides and new life highs in the upcoming sessions leading up to the election results.”
Good OI Information
According to Mandar Bhojane, Research Analyst at Choice Broking, a review of Nifty put options indicates a concentration of Open Interest (OI) at the 22,700 level, suggesting possible support at this level. On the call side, large OI concentrations are detected at the 23,500 and 24,000 levels.
Nifty 50 Forecast
The trend looks very strong following the formation of a large green candle on the daily chart. “Nifty witnessed a clean breakout above its prolonged consolidation on the daily timeframe, suggesting a sudden surge of renewed optimism,” said Rupak De, Senior Technical Analyst, LKP Securities. “The index has moved smartly towards 23,000, falling short by just 7 points.”
At the upper end, above 23,000, the index may short-term increase towards 23,500. Support is situated at 22,800 on the bottom end; he said, the strength might hold as long as it stays above 22,800.
Investors should stay involved, hedge their positions, and diversify their portfolios to take full advantage of this bounce, according to V.L.A. Ambala, Co-Founder of Stock Market Today (SMT), as the market prepares for a possible upside trend indicated by the change in the Nifty’s short-term support to 22,500. It is also anticipated that movements in midcap and smallcap will drive this rally.
Bulls in the Bank Nifty were eventually able to push the index higher after it had been trading in a narrow range for a few days. The index surpassed 48,500 as a result of the newfound optimism. If the support at 48,500 holds, a further increase from the current level appears plausible. In the immediate term, the index may move towards 49.500,” De said.