Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 9

The Indian stock market indices, Sensex and Nifty 50, are likely to open higher on Tuesday led by strong global market cues.

The trends on Gift Nifty signal a positive start for the Indian benchmark index. The Gift Nifty was trading around 21,694 level as compared to the Nifty futures’ previous close of 21,570.

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On January 8, the domestic equity benchmarks ended significantly lower with losses of nearly 1% amid weak global cues and profit booking.

The Sensex plunged 670.93 points, or 0.93%, to close at 71,355.22, while the Nifty 50 settled 197.80 points, or 0.91%, lower at 21,513.00.

Nifty formed a long bear candle on the daily chart, which is indicating a formation of bearish engulfing pattern (not a classical one). 

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“The market reacting down sharply after a small rise is signaling a presence of strong overhead resistance around 21,750-21,800 levels. The positive chart pattern like higher tops and bottoms is intact, but the formation of a new lower top at 21,763 could be an alarming signal for bulls at the higher levels. The immediate support of 10-day EMA (exponential moving average) has been violated on the downside again today at 21,560 levels,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

Shetti believes the short-term trend of Nifty 50 has turned down from the highs after a small rise and the selling pressure seems to have started to emerge from near 21,750-21,850 levels. The next lower supports to be watched at 21,350 - 20-day EMA. 

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Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty 50 Predictions

The Nifty 50 index slipped into weakness and declined nearly a percent and broke the 10-day EMA of 21,569.

“Nifty 50 ended the day close to its support at 21,500 and the short-term 14-day moving average, accompanied by a bearish engulfing candlestick pattern. This indicates a change in market sentiment. If 21,500 is breached in closing figures, Nifty may move towards the next support level at 21,200,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

The support of 21,500 if held can see recovery towards 21,650 which is the immediate hurdle zone, Shah added.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — January 9

Bank Nifty Predictions

The Bank Nifty index plunged 709 points, or 1.5%, to end at 47,450 on December 8.

“The Bank Nifty bears staged a strong comeback, leading to a breach of the critical support at 47,700 on a closing basis. Selling pressure was evident across the banking sector, and a sustained move below 47,700 may result in further declines towards the 47,000 level,” Shah said.

According to him, to resume the uptrend, the Bank Nifty index must surpass the key resistance at 48,300, targeting the 50,000 mark.

Upon reviewing the Open Interest (OI) data, the call side displayed the highest OI at the 48,000 level, closely followed by the 48,500 strike prices. Conversely, on the put side, the highest OI was observed at the 47,000 strike price, said Mandar Bhojane, Equity Research Analyst at Choice Broking.

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