The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 21,759 level as compared to the Nifty futures’ previous close of 21,829.
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The domestic equity indices witnessed a sharp decline on February 8 after the Reserve Bank of India’s (RBI) expected decision to maintain its key policy rates unchanged.
The Sensex declined 723.57 points to end at 71,428.43, while the Nifty 50 settled 212.55 points, or 0.97%, lower at 21,717.95.
Nifty 50 formed a long negative candle on the daily chart, which indicates an emergence of selling pressure from near the crucial overhead resistance of around 22,000 – 22,100 levels.
“After the repeated testing of the key overhead resistance of the previous opening downside gap of 17th Jan at 21,970 levels in the last 3-4 sessions, the bulls seem to have given up eventually and the market declined from the highs on Thursday,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
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Shetti believes the short-term trend of Nifty seems to have turned down and one may expect some more weakness in the short term.
“The near-term uptrend of the market remains intact and further weakness down to the immediate support of 21,550 – 21,500 levels could be a buying opportunity,” he said.
Here’s what to expect from Nifty and Bank Nifty today:
Nifty OI Data
On the call side, the highest Open Interest (OI) was observed at 22,000 strike prices while on the put side, the highest OI was at 21,500 strike price, noted Deven Mehata, Research Analyst at Choice Broking.
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Nifty 50 Prediction
Nifty 50 witnessed a sharp decline and ended 212 points lower on February 8 as follow-up selling emerged after profit booking in the previous trading session.
“On the lower end, it found initial support at the 20-DMA (20-day moving average). The trend could weaken if it drops below 21,690, at which point the index may decline towards 21,500. On the contrary, if it remains above 21,700, we might observe a recovery in the near term,” said Rupak De, Senior Technical Analyst, LKP Securities.
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Bank Nifty Prediction
The Bank Nifty index experienced a strong bear grip and plunged 807 points to close at 45,012 on February 8, encountering substantial selling pressure following the RBI policy announcement.
“The critical support zone of 45,500 has been breached and is now expected to act as a resistance level. Pullbacks towards this mentioned resistance are considered opportune levels for selling,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
According to Shah, the subsequent support is positioned at 44,400 and a break below this level is likely to intensify selling pressure, potentially leading the index towards the 44,000 mark.
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: 09 Feb 2024, 07:25 AM IST
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
