Expect a sluggish start for the Indian stock market indices, Sensex and Nifty 50, this Monday, following a strong rally. Signs suggest a potential consolidation phase. The Gift Nifty reflects a pessimistic beginning, trading at approximately 21,807, contrasting with Nifty futures’ last closing at 21,861.
Nifty 50 Sensex Today
On Friday, the main stock market indicators in the country took a dip, ending a five-day winning streak due to profit-taking following recent gains.
The Sensex concluded 170.12 points lower at 72,240.26, and the Nifty 50 dropped 47.30 points or 0.22% to settle at 21,731.40 on December 29.
Looking at the daily chart, the Nifty 50 displayed a small negative candle with slight upper and lower shadows. This pattern suggests the formation of a high wave or doji-type candle.
According to Nagaraj Shetti, a Senior Technical Research Analyst at HDFC Securities, such formations typically signal a potential trend reversal after a decent rise.
However, considering the context of this pattern appearing alongside Thursday’s bullish candle, it suggests the market might experience range-bound or consolidation movements rather than a significant shift. The weekly chart also shows a positive sign with a long bull candle surpassing the high wave pattern of the previous week.
Shetti maintains that the Nifty 50’s near-term upward trend remains intact, but there’s a chance of short-term consolidation or range-bound movement in the next 1-2 sessions before it resumes its upward momentum in the coming sessions.
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Nifty 50 Prediction
Anticipated Market Trends for Nifty 50 is given below:
On the last trading day, the Nifty 50 exhibited a sideways movement, fluctuating between 21,650 and 21,750.
The daily chart reveals the formation of a doji pattern, indicating uncertainty in the market. To validate this sentiment, we need a clear move either above 21,750 or below 21,650. Rupak De, Senior Technical Analyst at LKP Securities, suggests that a drop below 21,650 could lead Nifty towards 21,500.
On the flip side, sustained trading above 21,750 might propel the index towards the 22,000 mark.
Bank Nifty Prediction
The Bank Nifty index experienced a decrease of 216 points, closing at 48,292 on December 29.
Analyzing the daily chart, we observe a small red-bodied candle, indicating a decline in Bank Nifty. There’s a resistance level at 48,300, and if the index remains below this mark, the trend may favor the bears. Particularly, if the index drops decisively below 48,000, it could go even lower to 47,500, according to De.
On the flip side, a clear upward movement beyond 48,300 has the potential to push the index towards 48,800-49,000. It’s important to note that these insights are the opinions of individual analysts or broking companies, not Mint. For investment decisions, it’s recommended to consult certified experts.
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Nifty 50 Sensex Today FAQs
Q.1. Why is the Indian stock market expected to have a sluggish start on Monday?
Ans. The anticipated sluggish start follows a strong rally, and signs suggest a potential consolidation phase, reflecting in Gift Nifty trading at 21,807.
Q.2. What happened on the last trading day for Nifty 50 and Sensex?
Ans. Both indices experienced a dip, ending a five-day winning streak. Sensex concluded 170.12 points lower at 72,240.26, and Nifty 50 dropped 47.30 points to settle at 21,731.40 on December 29.
Q.3. What does the daily chart for Nifty 50 indicate?
Ans. The daily chart shows a small negative candle, suggesting a potential trend reversal. Analysts, however, suggest a chance of range-bound or consolidation movements before a resumption of upward momentum.
Q.4. What are the anticipated trends for Nifty 50?
Ans. Nifty 50 exhibited sideways movement, forming a doji pattern. A move above 21,750 or below 21,650 could indicate the market’s direction, with potential levels at 22,000 or 21,500, respectively.
Q.5. What is the Bank Nifty prediction based on recent analysis?
Ans. Bank Nifty closed at 48,292 with a small red-bodied candle, indicating a decline. Analysts suggest that staying below the resistance level of 48,300 may favor bears, with potential downside targets at 47,500 if it drops decisively below 48,000.