The Indian stock market indices, Sensex and Nifty 50, are likely to remain choppy on Wednesday amid mixed global cues and after a sharp decline seen in the previous session.
The trends on Gift Nifty indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 21,264 level as compared to the Nifty futures’ previous close of 21,202.
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On January 23, the domestic equity benchmark indices suffered steep losses on an across-the-board sell-off.
The Sensex plunged 1,053.10 points, or 1.47%, to end at 70,370.55, while the Nifty 50 closed 333.00 points, or 1.54%, lower at 21,238.80.
Nifty 50 formed a long bear candle on the daily chart, which is indicating a sharp downward reversal in the market after a minor upside bounce of the previous few sessions.
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“After the formation of bullish chart patterns like higher tops and bottoms in the last two months, Nifty has started to form a bearish pattern like lower tops and bottoms. The new lower top was formed on Tuesday at 21,750 levels and one may expect more weakness from here to form a new lower bottom of the sequence,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
He believes the short-term trend of Nifty is down and one may expect more weakness in the short term.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Prediction
Nifty 50 consolidated for a few days that led to a decline, with the index slipping below the lower end of the recent consolidation range and ending 333 points lower on Tuesday.
“The bearish sentiment appears to be strengthening as the Nifty closed at its lowest points on multiple days. Weakness may persist in the short term, with support at 21,200; below this level, the index could potentially decline towards 21,000 and beyond,” said Rupak De, Senior Technical Analyst, LKP Securities.
Looking ahead, he believes the market may continue to be a “sell on rise” scenario as long as it remains below 21,500.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — January 24
Bank Nifty Prediction
The Bank Nifty experienced a dominant bearish trend, with sustained selling pressure that dragged the index 1,043 points, or 2.26%, lower to close at 45,015.
“The current sentiment suggests a “sell on rise” strategy, emphasizing the prevailing bearish outlook. Immediate resistance is identified at 45,500 levels, and any upward movement towards this level is viewed as an opportune moment to consider selling positions,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
On the downside, he believes crucial support is established around the 45,000-44,800 zone. A breach below this support range may intensify the selling pressure, potentially leading to a decline towards the 44,000 mark, 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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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.
