In line with increases in their international counterparts, the Indian stock market indices, the Sensex and Nifty 50, are anticipated to open flat to higher on Wednesday.
The Indian benchmark index is off to a rather encouraging start, according to Gift Nifty’s tendencies. The Gift Nifty was trading at a premium of more than 10 points from the previous closing of the Nifty futures, at 22,460.
The key domestic equities indices finished Tuesday’s erratic session flat with a bias toward positive.
The Nifty 50 edged up 3.05 points, or 0.01%, to close at 22,335.70, while the Sensex gained 165.32 points, or 0.22%, to conclude at 73,667.96.
Following a bearish engulfing, the Nifty 50 created a neutral candlestick pattern on the daily chart, indicating that bearish pressure is still there in the market.
“There hasn’t been a refutation of the bearish Evening star pattern that emerged in the previous session. In the short future, Nifty might now remain in the 22,224–22,526 range. Investors and dealers are concerned about adverse breadth data, according to Deepak Jasani, Head of Retail Research at HDFC Securities.
What to anticipate from Bank Nifty and Nifty 50 today is as follows:
Good OI Information
The call side had the largest Open Interest (OI) at 22,500, followed by 22,600 strike prices, according to an analysis of the OI data. The largest OI on the put side was seen at the 22,000 strike price, according to Choice Broking Research Analyst Mandar Bhojane.
Nifty 50 Forecast
On March 12, amidst significant volatility, the Nifty 50 index concluded flat at 22,336 and created a long-legged doji candle.
The Nifty index saw a tumultuous trading session as the bulls and bears continued their war. A doji candle’s shape indicates that there is currently indecision; a breakout on either side could result in trending movements. The Nifty’s immediate resistance is above 22,500, and a close-day break above it would indicate that the bullish trend is back on track, according to Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
On the other hand, Shah thinks that 22,200–22,150 is the immediate support, and if this level is maintained, the index may see some rebound.
In the Nifty 50 index for this monthly expiry, a significant number of short straddles were formed in the 22,500 levels, according to Rahul Ghose, CEO of Hedged.in.
This indicates that market players anticipate the expiry to occur in the range of 22,000 and 22,900. Given that 22,000 is a solid floor for the index, it would be prudent to take a long position near this level, either between 22,150 and 22,000, or once prices cross and level off at 22,500, according to Ghose.
He continued, “It’s critical to wait for critical levels for entry and not try and chase prices, given Tuesday’s knee-jerk reaction on both sides.”
Forecast for the Bank Nifty
On Tuesday, the Bank Nifty index dropped 45 points to end the day at 47,282.
Despite tremendous volatility, the Bank Nifty index was able to maintain its support near the 46,800 level of the 20-DMA (Day Moving Average). The 47,800 mark is a significant barrier, and a breakthrough over it would open the door to all-time high levels, according to Shah.
As long as the aforementioned support levels are maintained, Shah claims that the Bank Nifty index will remain in a “buy on dip” position.