The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to see a muted opening on Friday amid mixed cues from global peers.
The trends on Gift Nifty also indicate a flat start for the Indian benchmark index. The Gift Nifty was trading flat at around 23,400 level.
On Thursday, the domestic equity indices ended higher, with the Nifty closing near 23,400 level.
The Sensex gained 204.33 points to close at 76,810.90, while the Nifty 50 settled 75.95 points, or 0.33%, higher at 23,398.90.
Nifty 50 formed a small negative candle on the daily chart at the highs with minor lower shadow.
“This market action indicates typical sideways range movement in the market in the last four sessions. The larger degree positive pattern like higher tops and bottoms is intact as per daily chart and the market is currently placed to form a new higher top,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to Shetti, the short-term trend of Nifty continues to be a range bound with positive bias. Previously, such sideways range movements at the higher tops have eventually resulted in a downward correction in the market from the highs.
V.L.A Ambala, Co-Founder of SMT is of the view that the current consolidation range of Nifty and its relatively high valuation point to a stable market but selective with quality stocks available at discounted price points in current all-time high market scenarios for low risk.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Analysing the Nifty Open Interest (OI) data, on the call side, the highest OI was observed at the 23,500 and 23,700 strike prices. On the put side, the highest OI was at the 22,800 strike price, said Mandar Bhojane, Research Analyst at Choice Broking.
Nifty 50 continued the lackluster movement for the fourth consecutive session on June 13 and closed the day higher 76 points amidst narrow range movement.
“Nifty has been consistently flat for the last four days, indicating a pause before a sharp move. The direction of this move is not yet known, at least not before any directional breakout. From here, a decisive move above 23,500 might lead to the covering of call writing, which could take the index higher towards 23,800,” said Rupak De, Senior Technical Analyst, LKP Securities.
On the lower end, he believes support is placed at 23,300, below which the index might weaken.
For the Nifty index, Ambala believes the key support levels for the next trading session will be between 23,360 and 23,290, whereas resistance will likely be noticed between 23,425 and 23,510.
The Bank Nifty scaled above 50,000 level during Thursday’s session but ended marginally lower by 48 points at 49,847.
“The Bank Nifty faced rejection at the 50,200 level, a strong resistance point. It closed at 49,800, forming a bearish candlestick. For momentum to continue, Bank Nifty needs to decisively break above 50,200. Until then, it is likely to trade range-bound, with support at 49,500 and resistance at 50,200,” De 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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