Nifty 50, Sensex today: What to expect from stock market indices in trade on September 22
- The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading at around 19,714 level as compared to the Nifty futures’ previous close of 19,769.
The Indian stock market indices are likely to open lower on Friday amid weak sentiment in the global peers.
The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading at around 19,714 level as compared to the Nifty futures’ previous close of 19,769.
On Thursday, the domestic equity markets witnessed an all-round selloff with both the benchmark indices ending in the negative territory for the third consecutive session.
The Sensex dropped 570.60 to close at 66,230.24, while the Nifty 50 settled 159.05 points lower at 19,742.35.
Nifty 50 formed a long bear candle on the daily chart with an unfilled opening down gap, which is back to back for the last two sessions.
“Technically, whenever the underlying shows sharp reversals with more gap up or gap down moves, such trend more often continues for a longer period. Having formed the top reversal pattern at 20,222 levels and the recent gap down openings indicates more weakness ahead for the market,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Shetti believes minor upside bounce is to be expected from the support level at around 19,550, which is weekly 10 period EMA (exponential moving average), but the said bounce could be a sell on rise opportunity.
Here’s what to expect from Nifty and Bank Nifty today:
Nifty
Nifty extended its decline for the third day as the benchmark index slipped towards 19,700.
“The Nifty index closed below the 20 EMA, signaling a diminishing bullish sentiment. Weakness appears evident with a bearish crossover in the RSI. Selling on rallies remains the favored strategy as long as it stays below 20,000,” said Rupak De, Senior Technical analyst at LKP Securities.
On the downside, he added, support is situated in the range of 19,700 / 19,630.
Bank Nifty
The Bank Nifty witnessed heavy selling on Thursday and the index cracked 761 points, or 1.7% to close at 44,624.
“Bank Nifty experienced a significant correction during the day, with the Banking benchmark Index dropping below the 45,000 mark for the first time in several days. Furthermore, it fell below both the 20-EMA and 50-EMA on the daily timeframe. The RSI is signaling bearishness with a bearish crossover on the daily timeframe,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
In the short term, Shah believes, it could potentially move towards 44,000 on the lower end, while encountering resistance at 45,000 on the higher end.
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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