Nifty 50, Sensex today: What to expect from Indian stock market in trade on March 22
- The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around the 22,091 level, a discount of nearly 15 points from the Nifty futures’ previous close.
The Indian stock market indices, Sensex and Nifty 50, are expected to see a muted opening on Friday amid mixed global market cues.
The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around the 22,091 level, a discount of nearly 15 points from the Nifty futures’ previous close.
On Thursday, the domestic equity indices closed with strong gains with the Nifty 50 settling above the 22,000 level.
The Sensex jumped 539.50 points to close at 72,641.19, while the Nifty 50 settled 172.85 points, or 0.79%, higher at 22,011.95.
Nifty 50 formed a small positive candle on the daily chart with minor upper and lower shadows and also with a gap-up opening.
“Technically, this pattern indicates a pullback rally in the market post downward correction. Having negated the bullish pattern like higher tops and bottoms recently, the present pullback is expected to form a lower top in the next few sessions,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
He is of the view that further upside from here could pull the Nifty 50 towards the crucial overhead resistance around 22,150 - 22,200 levels in the short term and any decline from here could drag the Nifty 50 down to 21,700 levels again in the near term.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
Analysis of the Nifty Open Interest (OI) data reveals the highest OI on the call side at the 22,200 strike price, followed by the 22,500 strike price. On the put side, the highest OI is observed at the 21,800 strike price, said Mandar Bhojane, Research Analyst at Choice Broking.
Nifty 50 Prediction
The Nifty 50 index shifted into a decent follow-through up move on March 21 and closed the day higher by 172 points, reclaiming the psychological 22,000 mark.
“The Nifty rallied following a Doji candlestick pattern on the daily chart, indicating a robust bullish reversal. Additionally, the index has successfully reclaimed the crucial 50-day Simple Moving Average (SMA). Looking ahead, the Nifty could potentially extend its gains towards the range of 22,250 - 25,300. Moreover, a breakthrough above 22,300 may initiate a rally towards 22,500 and beyond,” said Rupak De, Senior Technical Analyst, LKP Securities.
He believes the buy-on-dips strategy is expected to remain viable as long as the Nifty 50 maintains levels above 21,840.
Ruchit Jain, Lead Research at 5paisa.com is of the view that it is too early to say that the markets have bottomed based on one day’s up move and hence, the follow up move in the near term will be crucial to see.
“As of now, Nifty seems to be retracing the recent correction where markets halted its momentum around its initial resistance of 22,080. A move above this Thursday’s high could lead to a continuation of the move toward the 50% and the 61.8% retracement levels which are seen around 22,120 and 22,215. On the flip side, 21,800 will be the support level which if breached, then it could lead to a down move up to 21,500,” Jain said.
He advises traders to keep a tab on the above levels and trade according to the momentum.
Bank Nifty Predictions
The Bank Nifty index rebounded and jumped 374 points to close at 46,685 on Thursday.
“The Bank Nifty remained volatile following a gap-up start. Sentiment improved as the index broke out above the recent consolidation. On the daily chart, the index formed a slightly higher bottom, suggesting diminishing bearishness,” De said.
Over the short term, the index could move towards 47,000; a decisive move beyond 47,000 might propel it towards 47,700. Support is situated at 46,300 on the lower end, 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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