Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 20
- Bank Nifty index has moved back above the critical near-term moving average. In the short term, the index is likely to consolidate within the bands of 21,500 and 21,700.
The Indian stock market indices, Sensex and Nifty 50, are expected to open on a positive note Saturday tracking overnight rally on Wall Street.
The domestic equity market will have a normal trading session today, while the markets will remain shut on Monday, January 22.
On Friday, the benchmark indices witnessed a minor upside bounce after showing sharp weakness in the last couple of sessions.
The Sensex jumped 496.37 points, or 0.70%, to end at 71,683.23, while the Nifty 50 settled 160.15 points, or 0.75%, higher at 21,622.40.
Nifty 50 formed a small positive candle on the daily chart with minor upper and lower shadow.
“The market action of Friday indicates a formation of doji or high wave type candle pattern (not a classical one). This reflects the ongoing pullback rally in the market. The upside bounce of Friday could be a cheering factor for bulls to make a comeback. But, as long as the sharp opening downside gap of Wednesday remains open at 21,970, there is a higher probability of a sell on rise in the market for the short term,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Predictions
Following a strong start on January 19, the Nifty 50 remained sideward throughout the session and ended above 21,600 level.
“The index has moved back above the critical near-term moving average. In the short term, the index is likely to consolidate within the bands of 21,500 and 21,700. A decisive breakout on either side would confirm a directional move,” said Rupak De, Senior Technical Analyst, LKP Securities.
Bank Nifty Predictions
The Bank Nifty underperformed the frontline indices and ended 12 points lower at 45,701 on Friday.
“The Bank Nifty is currently witnessing a bearish trend, with bears exerting dominance from higher levels. The index encounters strong resistance around the 46,300 mark, posing a significant hurdle for any upward movement. Active put writing indicates a lower-end support at 45,500; however, breaching this level may intensify selling pressure,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Additionally, the index is trading below short-term moving averages, signaling a bearish sentiment in the current market scenario, he added.
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