BackNifty 50, Sensex today: What to expect from stock market indices in trade on November 21
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 19,800 level as compared to the Nifty futures’ previous close of 19,750.
PremiumThe Indian stock market indices, Nifty 50 and Sensex today are likely to see a higher opening tracking gains in global peers.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 19,800 level as compared to the Nifty futures’ previous close of 19,750.
The domestic equity market ended Monday’s session lower. The Sensex fell 139.58 points to close at 65,655.15, while the Nifty 50 ended 37.80 points, or 0.19%, lower at 19,694.00.
Nifty 50 formed a small negative candle on the daily chart with minor upper and lower shadow. Technically, this pattern indicates a range bound action in the market with weak bias.
“Minor degree of higher tops and bottoms is observed in Nifty as per daily timeframe chart. The recent swing high of 19,875 could be considered as a new higher top of the sequence. Any dip from here is expected to be a higher bottom of the sequence," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
He believes the short-term trend of Nifty 50 continues to be range bound. There is a possibility of some more consolidation or minor weakness in the short term before showing upside bounce from the lows, he added.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
Examining the Open Interest (OI) data, Mandar Bhojane, Research Analyst at Choice Broking said the call side shows the highest OI at 19,800, followed by 19,900 strike prices. On the put side, the highest OI is recorded at the 19,600 strike price.
“Despite these factors, a bullish outlook on the index is maintained, and a “buy on dips" strategy is recommended. Traders are advised to focus on outperforming sectors and use this phase to gradually add quality names to their portfolios," Bhojane added.
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Nifty 50
“The Nifty index is currently trading within a broad consolidation phase, forming an inside bar candle pattern, with support observed at 19,650 and resistance at 19,800. For a decisive trending move, the index needs to break out of this range with significant volumes on either side," said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Despite the consolidation, Shah believes, the broader picture remains bullish, with major support identified in the 19,550-19,500 zone. According to him, a break above 19,850 is anticipated to open up room for the index to reach all-time high levels.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — November 21
Bank Nifty
The Bank Nifty also consolidated and ended flat at 43,585 on November 20.
“The Bank Nifty index has formed a doji candle on the daily chart, suggesting indecisiveness at the current levels. The index encounters formidable resistance at 44,000, where the highest open interest is concentrated on the call side. A breakthrough above this level is anticipated to trigger sharp short-covering moves," Shah said.
Conversely, he believes the lower-end support is positioned at 43,300, and a breach below this level could pave the way for further downside movement towards the 42,800 level.
“This data highlights a delicate balance in market sentiment, with potential for significant moves based on key resistance and support levels," Shah added.
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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.
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