Nifty 50, Sensex today: What to expect from stock market indices in trade on December 7 | Mint
Active Stocks
Fri Feb 23 2024 15:58:13
  1. Tata Steel share price
  2. 145.50 -0.24%
  1. State Bank Of India share price
  2. 759.40 -0.86%
  1. HDFC Bank share price
  2. 1,420.90 0.08%
  1. NTPC share price
  2. 337.70 -0.54%
  1. ITC share price
  2. 411.60 -0.65%
Business News/ Markets / Stock Markets/  Nifty 50, Sensex today: What to expect from stock market indices in trade on December 7
BackBack

Nifty 50, Sensex today: What to expect from stock market indices in trade on December 7

Nifty 50 formed a dragonfly doji like pattern which hints at top reversal. Nifty could now remain in the 21,000 - 20,852 band for the near term. December 7 is the 8th day of rise which is a Fibonacci number and normally suggest a change of trend, analysts said.

Nifty 50 formed a small negative candle on the daily chart with a long lower shadow. (Photo: ANI)Premium
Nifty 50 formed a small negative candle on the daily chart with a long lower shadow. (Photo: ANI)

The Indian stock market indices continued their upward trajectory, hitting record highs, with the benchmark Nifty 50 likely to touch the 21,000-mark for the first time ever. Global market cues suggest a higher start for Nifty 50 and Sensex today.

The trends on Gift Nifty indicate a flat start for the Indian benchmark index. The Gift Nifty was trading around 21,055 level as compared to the Nifty futures’ previous close of 21,040.

The domestic equity benchmark indices extended their record-setting spree on December 6 with the Nifty 50 index closing above 20,900 level.

The Sensex surged 357.59 points to end at 69,653.73, while the Nifty 50 settled 82.60 points, or 0.40%, at 20,937.70, on Wednesday.

Nifty 50 formed a small negative candle on the daily chart with a long lower shadow. 

“Technically, this pattern indicates a formation of dragonfly doji type candle pattern at the all-time highs. Though, this market action alerts caution for bulls at the new highs, but a reasonable decline in subsequent sessions is likely to confirm short term top reversal for the market," said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

Shetti believes the short-term trend of Nifty 50 continues to be positive. Having moved up sharply in the last few sessions and the placement of hurdle around 20,910 levels (61.8% Fibonacci extension), there is a possibility of consolidation or minor correction from near 21,000 levels in the short term.

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

Nifty Open Interest Data

Speaking on the Nifty Open Interest (OI) data, Deven Mehata, Research Analyst at Choice Broking said the highest OI on the call side was observed at 21,000 followed by 21,100 strike prices. While on the put side, the highest OI is at 20,800 strike price.

(Exciting news! Mint is now on WhatsApp Channels :rocket: Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!)

Nifty 50 Predictions

“The index formed a hanging man pattern on the daily chart, suggesting the possibility of a bearish reversal. The bearish formation around the crucial resistance of 21,000 amplifies the bearish sentiment. The support lies at 20,850, below which the market may witness a healthy correction in the short term," said Rupak De, Senior Technical analyst at LKP Securities.

On the other hand, he believes a move above 21,000 might trigger a resumption of the bullish trend.

Bank Nifty Predictions

The Bank Nifty index experienced profit booking at higher levels in anticipation of the upcoming key RBI policy event and ended 178 points lower at 46,834 on December 6.

“Despite this, the overall market sentiment remains bullish. It is advisable to adopt a buy-on-dip strategy, maintaining a positive outlook as long as the index sustains above the critical level of 46,400," said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

According to Shah, the immediate hurdle for Bank Nifty is positioned at 47,250, and a successful breach beyond this level is anticipated to pave the way for further upside momentum towards the 48,000 level.

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 taking any investment decisions.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 07 Dec 2023, 06:57 AM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App