The Gift Nifty indicates a negative start for the Indian benchmark index, trading at around the 22,950 level. This is about 50 points lower than the previous close of Nifty futures.
Yesterday, both domestic equity indices closed at record highs. The Sensex rose by 1,196.98 points, or 1.61%, closing at 22,967.65, while the Nifty 50 settled 369.85 points, or 1.64%, higher at 75,418.04.
Technical Analysis Insights
Nifty 50 showed strong buying interest, forming a long bullish candlestick pattern on the daily charts. According to Subash Gangadharan, Senior Technical/Derivative Analyst at HDFC Securities, the positive trend is likely to continue. He noted that the 20-period moving average remains above the 50-period MA, which is a good sign for the near-term uptrend. Additionally, Nifty continues to hold above the 20-day and 50-day SMA, with the 14-day RSI at 68.23 indicating a rising trend and not being overbought.
An analysis of Nifty put options reveals a concentration of Open Interest (OI) at the 22,700 level, suggesting potential support at this level. On the Call side, significant OI concentrations are observed at the 23,500 and 24,000 levels.
Nifty 50 Prediction
The Nifty 50 index rallied 1.64% on May 23, ending just below the 23,000 mark. According to Rupak De, Senior Technical Analyst at LKP Securities, the index witnessed a clean breakout above its prolonged consolidation on the daily timeframe, indicating renewed optimism. He predicts the index might move towards 23,500 in the short term, with support placed at 22,800.
V.L.A. Ambala, Co-founder of Stock Market Today (SMT), advises investors to remain invested, hedge their positions, and diversify their portfolios. She believes Nifty could gain support between 22,850 and 22,770, with resistance between 23,340 and 23,150.
Bank Nifty Analysis
The Bank Nifty index jumped 987 points, or 2.06%, closing at 48,769 on Thursday. De suggests further rally is likely, with the index potentially moving towards 49,500 in the short term, provided support at 48,500 remains intact. Immediate resistance is placed at 49,000.
Investors are advised to stay tuned for these potential movements in the market.
