Nifty 50, Sensex today: What to expect from Indian stock market in trade on December 4 ahead of RBI policy meeting
- Nifty 50, Sensex today: The trends on Gift Nifty also indicate a flat start for the Indian benchmark index. The Gift Nifty was trading around 24,540 level, a discount of nearly 7 points from the Nifty futures’ previous close.
The Indian stock market benchmark indices, Sensex and Nifty 50 are likely to open on a tepid note Wednesday tracking mixed global cues.
The trends on Gift Nifty also indicate a flat start for the Indian benchmark index. The Gift Nifty was trading around 24,540 level, a discount of nearly 7 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity benchmark indices ended with healthy gains, extending the rally for the third consecutive session.
The Sensex surged 597.67 points, or 0.74%, to close at 80,845.75, while the Nifty 50 settled 181.10 points, or 0.75%, higher at 24,457.15.
Nifty 50 formed a reasonable bull candle on the daily chart, which is indicating that the index is now placed at the edge of breaking above the crucial hurdle of around 24,350 - 24,500 levels, which were previous swing highs.
“The present upside breakout could mean a possible negation of previous couple of months bearish pattern like lower tops and bottoms, as per daily timeframe chart. Hence, the recent swing low of 23,873 (28th November) is expected to be a new higher bottom. This market action is indicating that the bullish chart pattern like higher tops and bottoms is likely to unfold from here and that could possibly result in more upsides for the market ahead,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend of Nifty 50 continues to be positive and a decisive move above 24,400 - 24,500 levels is likely to open the next upside of around 24,900 - 25,000 levels in the near term.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
The highest Nifty call open interest was at 24,800 and 25,000 levels, indicating significant resistance zones. Meanwhile, the highest put open interest at 24,100 underscored a robust support level.
Nifty 50 Prediction
Nifty 50 continued to advance for the third consecutive session on December 3 and closed the day with another decent gain of 181 points.
“The 24,500 level is being closely monitored as a critical pivot for further upward momentum. Sustained buying interest, coupled with favorable technical indicators, suggests an optimistic short-term outlook, with opportunities to accumulate positions on dips,” said Mandar Bhojane, Research Analyst at Choice Broking.
VLA Ambala, Co-Founder of Stock Market Today, noted that the Nifty 50 formed a Bullish Hammer candlestick pattern above the 20, 50, and 200-day EMAs (Exponential Moving Average).
“This makes a good bet for buying on dips, whether for intraday or swing trading. Investors should focus on mid-cap and small-cap stocks that have strong growth potential over the next 2-3 years. Amid these developments, Nifty 50 can hover for support between 24,350 and 24,250, and resistance is expected to be around 24,560 and 24,700,” Ambala said.
Bank Nifty Prediction
Bank Nifty index rallied 586.75 points, or 1.13%, to close at 52,695.75 on Tuesday, forming a bullish candlestick pattern on the daily timeframe.
“Bank Nifty has closed near its immediate resistance at the 52,800 level. The index has been trading above its 20 and 50 EMA, indicating bullishness. A break of the resistance can take the index towards the 53,500 level. The ADX DI+ line is sloping up with the ADX average line picking momentum, suggesting further upside from the current level. The momentum indicators too on the daily chart indicate bullishness,” said Dr. Praveen Dwarakanath, Vice President of Hedged.in.
Option writer’s data for the monthly expiry show increased writing in puts at 52,500 levels and short covering of calls below 52,500 levels, indicating a move on the upside, he added.
Om Mehra, Technical Analyst, SAMCO Securities said that the Bank Nifty index formed a bullish candle, signalling sustained upward momentum, potentially bridging the gap toward 52,818.
“Notably, it climbed above 61.8% Fibonacci retracement level at 52,680, positioning towards the next resistance at 53,000, followed by 53,450 at the 78.6% retracement level A sustained bullish trend is evident on the hourly chart, and the daily RSI remains steady around 60. The immediate support remains at 52,400, providing a cushion for any potential pullbacks,” Mehra said.
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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