The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around 22,060 level, a discount of over 70 points from the Nifty futures’ previous close.
On Monday, the benchmark equity indices ended with minor gains amid volatility.
The Sensex rose 104.99 points to close at 72,748.42, while the Nifty 50 settled 32.35 points, or 0.15%, higher at 22,055.70.
Nifty 50 formed a small positive candle on the daily chart with minor upper and lower shadows.
“Technically, this pattern is indicating range-bound action in the market post the sharp selloff of 13th March. The immediate support of 21,900 has been tested in the last four sessions, but the market has failed to show any meaningful upmove from the support. This may not be a good sign for the bulls at the highs,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
Also Read: Indian stock market: 7 key things that changed for market overnight – Gift Nifty, US tech stocks rally to oil prices
He believes the short-term trend of the Nifty 50 remains positive with range-bound action. A decisive break below the support of 21,900 – 21,850 is likely to drag the Nifty down to 21,500 levels in a quick period of time. Any upside bounce from here could encounter a strong hurdle around 22,200 levels.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
Upon analyzing the Nifty Open Interest (OI) data, the call side displayed the highest OI at the 22,200 strike price, followed by the 22,500 strike price. On the put side, the highest OI was observed at the 21,800 strike price, noted Mandar Bhojane, Research Analyst at Choice Broking.
Nifty 50 Prediction
Nifty 50 continued to witness range bound action for the second consecutive session on March 18 and closed the day higher by 32 points.
“The Nifty 50 remained volatile throughout the day, oscillating between 21,900 and 22,100. Bulls have thus far managed to defend the 21,900 level successfully. However, a dip below 21,900 could strengthen the bears’ position, although for now, any downturn is being met with buying activity. On the upside, a sustained upward movement beyond 22,100 may propel the index towards 22,250 and beyond,” said Rupak De, Senior Technical Analyst, LKP Securities.
According to him, support is established at 21,900, below which the index might decline towards 21,700.
Rahul Ghose, CEO, Hedged.in said that the 22,000 level continues to be a strong support for the Nifty Index, and going by the March monthly expiry premium, only below 21,900 is where a short should be initiated.
Bank Nifty Prediction
The Bank Nifty index recovered from the day’s low and closed 18 points lower at 46,576 on Monday.
“Bank Nifty slipped lower initially due to selling pressure in the first hour. However, selling was absorbed around 46,000 as buyers stepped in at lower levels. Sentiment may improve in the near term, given that the index closed above the resistance of 46,500. Looking ahead, if the index surpasses 46,750, it could potentially move towards 47,000 and beyond in the short term,” said De.
On the downside, support is situated in the 46,500-46,300 zone, he added.
According to Ghose, Bank Nifty continued to see no unwinding of the short straddles prevalent at 47,000, indicating a continued sideways move for the next couple of days.
“The top for Bank Nifty for the near term is seen at 48,000 for March and 49,000 for April. This level also happens to be the level for the highest call writing for both the March and April series,” Ghose 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 making any investment decisions.
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Published: 19 Mar 2024, 07:21 AM IST