The trends on Gift Nifty suggest a positive start for the Indian benchmark index. Gift Nifty was trading around 22,690, which is about 60 points higher than the previous close of Nifty futures.
On Thursday, domestic equity indices fell sharply due to the monthly F&O expiry, marking the fifth consecutive session of losses.
The Sensex dropped by 617.30 points to close at 73,885.60, while the Nifty 50 fell 216.05 points, or 0.95%, to end at 22,488.65.
Nifty 50 formed a bearish candlestick pattern with upper and lower shadows on the daily chart.
“On the daily chart, the uptrend has weakened. Thursday’s negative closing pushed the Nifty below the previous swing high of 22,795. The 14-day RSI at 51.1 is falling and remains below its 9-day EMA, indicating weakening momentum. However, Nifty still holds above the 20 and 50-day SMA,” said Subash Gangadharan, Senior Technical/Derivative Analyst at HDFC Securities.
While Nifty has corrected further, it has rebounded from near the 50-day SMA. Gangadharan believes this opens the possibility of a bounce back in the coming sessions.
“Nifty needs to cross the immediate resistance of 22,706 for the bulls to take control. Key supports to watch for signs of weakness are at 22,417 – 22,387. Markets are likely to be volatile as we approach the election result announcement,” he added.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
According to Nifty Open Interest (OI) data, on the call side, the highest OI is at the 23,000 strike price, followed by the 23,500 strike price. On the put side, the highest OI is at the 22,000 strike price, noted Mandar Bhojane, Research Analyst at Choice Broking.
Nifty 50 Prediction
The Nifty 50 index closed 216 points lower, below the 22,500 level on May 30.
“Nifty has been volatile with a bearish trend. The short-term sentiment remains weak as the index fell below the critical 21-day Exponential Moving Average (21-EMA). Significant call writing was seen at 22,500. For a meaningful recovery, Nifty needs to stay above 22,500,” said Rupak De, Senior Technical Analyst, LKP Securities.
However, if it fails to move above 22,500, fresh selling might drive the index towards 22,300 / 22,100, he added.
Bank Nifty Prediction
The Bank Nifty index performed better than Nifty 50, closing 181 points higher at 48,682 on Thursday. It formed a bearish candle on the daily chart with good volume, suggesting further bearish pressure.
“After a gap down opening, Bank Nifty found support near its 21-day EMA and closed with a bullish candlestick. Recovery in large-cap private bank stocks kept the index in the green. The critical support level for Bank Nifty is 48,300, while 49,000 serves as strong resistance,” De said.
A decisive movement is anticipated once these levels are breached, he added.
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