The Indian stock market is likely to open flat with a positive bias on Wednesday amid gains in global peers. The benchmark equity indices Nifty 50 and Sensex today are likely to see rangebound trade after a flat closing in the previous session.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 19,513 level as compared to the Nifty futures’ previous close of 19,480.
The frontline indices paused its three-day rally on Tuesday and ended marginally lower as investors likely opted for profit booking. The Sensex ended 16.29 points lower at 64,942.40, while the Nifty 50 closed down 5.05 points at 19,406.70.
Nifty 50 formed a small body candle on the daily chart with long lower shadow, which indicates a formation of doji type candle pattern at the highs.
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“Normally, such doji formation at the swing highs or lows calls for impending trend reversals for the underlying. Having formed this pattern beside the long bull candle of Monday signal chances of range bound movement in the market,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
The larger degree of lower tops and bottoms is intact as per daily timeframe chart and currently, Nifty is moving up towards the new lower top formation of the sequence. Still there is no confirmation of any lower top reversal pattern yet at the highs, he added.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50
Nifty 50 saw intraday buying in the mid to later part on November 7 and closed the day by erasing most of the intraday loss.
“Nifty remained volatile within a narrow range as traders remained uncertain ahead of the US Federal Reserve Chairman’s scheduled speech. On the daily chart, Nifty encountered resistance at the 21-day EMA (exponential moving average) and closed just below it. If it manages to surpass the 21EMA, which is currently around 19,414, it could potentially head towards the 19,650-19,700 range,” said Rupak De, Senior Technical Analyst at LKP Securities.
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According to him, support for Nifty 50 is situated at 19,300 on the downside.
Bank Nifty
The Bank Nifty index exhibited volatility throughout the day on November 7 and ended 119 points higher at 43,738, extending its gaining streak for the fourth consecutive day.
“On the daily chart, the index has closed above the 21EMA for the first time in several days. The sentiment appears to be positive at this point, and the setup seems favorable for a robust upward movement in the index,” De said.
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He believes in the near term, the Bank Nifty index may potentially move towards 44,500 on the upside, with support situated at 43,300 on the lower end.
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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.
