On Monday, following mixed global market signals, the Sensex and Nifty 50, two indicators of India’s stock market, are anticipated to open flat.
Also, the Gift Nifty trends show that the Indian benchmark index is off to a slow start. At the time of writing, the Nifty futures were trading at 22,222, while the Gift Nifty was hovering around 22,221.
Despite the Nifty 50 reaching a new high of 22,297 level during the day, the domestic equity indices closed flat on Friday after trading in a narrow range.
The Nifty 50 finished 4.75 points, or 0.02%, lower at 22,212.70, while the Sensex fell 15.44 points to conclude at 73,142.80.
On the daily chart, at the new highs, Nifty 50 developed a modest bearish candle.
Currently, Nifty is trading near the 22,200 level, which was a previously broken resistance point. The market may enter a period of consolidation or slight weakness next week after failing to sustain a robust upmove at fresh highs, according to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
A little positive candle with minor upper and lower shadows was produced at the swing highs on the weekly chart of Nifty 50, indicating that it formed a high wave type candle.
In related news, the Nikkei had record highs in FPI flows while Gift Nifty was one of seven major overnight market shifts in India.
This pattern may have less predictive power now that it has moved into a wider range in the past month. The upward trend of Nifty in the short term is still valid. The market may have a small decline this week after encountering resistance between 22,250 and 22,300, according to Shetti. “Buy on dips” would be an appropriate strategy in this situation.
The following is today’s forecast for Bank Nifty and Nifty 50:
The Nifty Fifty Forecast
On February 23, the Nifty 50 closed flat, showing a bearish bias, and it stayed inside its range.
Profit booking caused Nifty to close at the day’s low as it failed to maintain its morning momentum. Nevertheless, short-term optimism persisted as the index closed over the critical resistance level of 22,200, with 22,400 serving as the next obstacle. According to Rupak De, a senior technical analyst at LKP Securities, the price is likely to find short-term support at 21,900.
Assuming the Nifty 50 stays over 21,900, he thinks it would be a good buy on dips index.
Nifty Bank Forecast
After three straight sessions of decline, the Bank Nifty closed at 46,812 on February 23, a loss of 108 points.
The strong momentum of the Bank Nifty index continued, and it broke over the 46,500 mark, which is now a strong support. According to Kunal Shah, a Senior Technical & Derivative Analyst at LKP Securities, who targets an upside of 48,000, any retreat into this support zone is a great opportunity to start long positions.
His prediction is that the index would resume its ascent toward the specified targets of 48,000 once it breaks decisively above the 47,100 mark.