Nifty 50, Sensex today: What to expect from Indian stock market in trade on Jan 16 after Hindenburg shut down
- Nifty 50, Sensex today: The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 23,405 level, a premium of nearly 140 points from the Nifty futures’ previous close.
The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday, tracking a rally in global markets.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 23,405 level, a premium of nearly 140 points from the Nifty futures’ previous close.
On Wednesday, the domestic equity market ended higher, with the Nifty closing above 23,200 level.
The Sensex gained 224.45 points to close at 76,724.08, while the Nifty 50 settled 37.15 points, or 0.16%, higher at 23,213.20.
Nifty 50 formed a small red candle on the daily chart with minor upper and lower shadow.
“This market action signals choppy movement in the market with positive bias. The negative chart pattern like lower tops and bottoms is intact and present pull back could be in line with the new lower top of the pattern. But the lower top reversal needs to be confirmed at the highs,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the near-term trend of Nifty 50 is still weak and a sustainable move above the hurdle 23,300 - 23,350 levels could further strengthen the upside bounce in the market. At the lows 23,050 is going to be a crucial support for the market.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Prediction
Nifty 50 extended its breather rally with range bound action on January 15 and closed the day with minor gains of 37 points.
“Another day of choppy trades was witnessed as the market lacked direction. However, sentiment is likely to favor a recovery in the short term, with the potential to reach 23,400 on the higher end. The sentiment is expected to remain positive as long as the market stays above 23,000. A buy-on-dips strategy appears to work well in the current scenario,” said Rupak De, Senior Technical Analyst at LKP Securities.
Dr. Praveen Dwarakanath, Vice President of Hedged.in, noted that although the Nifty 50 index broke its previous day’s high, it formed a doji candle with closing below its opening, indicating weakness in the index.
“The index is trading well below the 20-day moving average, indicating weakness in the index to continue. Any bounce in the index can be used to sell the index. The momentum indicators are well below the oversold region, which can act as a reason for a dead cat’s bounce in the index from the current level. Options writer’s data for the January monthly expiry showed increased writing of the calls at the 23,200 and above levels, indicating mild bearishness in the index,” said Dwarakanath.
VLA Ambala, Co-Founder of Stock Market Today said that on technical charts, Nifty 50 formed a spinning top candlestick pattern during the last market session.
“Amid these developments, Nifty could expect support near 23,080, 23,010, or 22,970 and meet resistance between 23,350 and 23,410 in the next session,” Ambala said.
Bank Nifty Prediction
Bank Nifty index gained 22.55 points, or 0.05%, to close at 48,751.70 on Wednesday, forming a High Wave-like candlestick pattern on the daily charts.
“Bank Nifty also broke its previous day’s high, however, it closed in red, indicating weakness in the index. Yesterday’s intraday bounce was sold-off from the day’s high of 49,100 level, which will act as a resistance for the index. The momentum indicators are in the oversold region, which can be a possible reason for a bounce in the index from the current level,” said Dwarakanath.
Options writer’s data for the monthly expiry showed increased writing of the calls at the 49,000 level, suggesting a weakness in the index, 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 making any investment decisions.
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