The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 21,861 level as compared to the Nifty futures’ previous close of 21,830.
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On Monday, the domestic benchmark indices hit a new high but witnessed profit booking at higher levels, ending flat with a positive bias.
The Sensex gained 31.68 points to close at 72,271.9, while the Nifty 50 ended 10.50 points, or 0.05%, higher at 21,741.90.
Nifty 50 formed a small body of positive candles on the daily chart with upper and lower shadows. Technically, this pattern indicates the formation of a high wave type candle pattern and this indicates high volatility in the market at the highs.
“The positive chart pattern like higher tops and bottoms is intact on the daily chart and Nifty is currently forming a new higher top of the sequence. Still, there is no confirmation of any top reversal pattern in the high market,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
He believes the near-term uptrend status of Nifty remains intact. However, the market has started to exhibit high volatility around the new highs, which signal chances of another round of downward correction from the highs.
“A decisive move above 21,850 levels is expected to nullify the present bearish effect and that could open more upside for the near term,” Shetti said.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty Open Interest Data
On the call side, the highest OI is observed at 22,000 followed by 21,800 strike prices while on the put side, the highest OI is at 21,700 strike price, said Deven Mehata, Equity Research Analyst at Choice Broking.
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Nifty 50 Predictions
Nifty 50 remained volatile throughout the session on January 1 as traders remained indecisive.
“On the hourly chart, the Nifty fell below 20 DMA on an intraday basis before closing on a positive note. Going forward a decisive fall below 21,650 might call for directional fall in the market,” said Rupak De, Senior Technical Analyst at LKP Securities.
On the higher end, he believes, a close above 21,750 might take the index towards the higher levels.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — 2nd January
Bank Nifty Predictions
The Bank Nifty fell by 58 points to end at 48,234 on January 1.
“The Bank Nifty has fallen below 20DMA on the hourly chart, suggesting a waning bullishness. The sentiment might remain weak over the short term, however immediate support is placed at 48,000, where put writers are present heavily. A decisive fall below 48,000 might take the index towards 47,700/47,500,” De said.
On the higher end, 48,300 is a significant level of resistance and bullish momentum might resume only above that level only, he added.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Published: 02 Jan 2024, 07:40 AM IST
