Gift Nifty indicators also point to a sour start for the Indian benchmark index. Near the 22,405 level, the Gift Nifty was trading at a discount of about 30 points from the previous closing of the Nifty futures.
A tiny negative candle with a minor upper and lower shadow was formed on the daily chart by Nifty 50.
Weak sentiment in global markets suggests that the Sensex and Nifty 50, two indicators of India’s stock market, would commence Wednesday’s trading session lower.
Gift Nifty indicators also point to a sour start for the Indian benchmark index. Near the 22,405 level, the Gift Nifty was trading at a discount of about 30 points from the previous closing of the Nifty futures.
As a result of weak global cues, domestic equities indices ended lower on Tuesday, ending a four-day winning streak.
The Nifty 50 ended the day 49.30 points, or 0.22%, lower at 22,356.30, while the Sensex slid 195.16 points to close at 73,677.13.
A tiny negative candle with a minor upper and lower shadow was formed on the daily chart by Nifty 50. From a technical perspective, this pattern suggests that the market is experiencing a small but volatile drop to the downside.
Even on the daily chart, there is a positive pattern with higher highs and lower lows. Monday saw Nifty construct a new higher top at 22,440 levels, and the current decline may coincide with the sequence’s new higher bottom. Senior Technical Research Analyst Nagaraj Shetti of HDFC Securities said that the bumpy short-term trend of Nifty is likely to persist into the upcoming session.
According to Shetti, the uptrend in the near term is still valid, and a sustained rebound from the lower levels could be in store.
An analysis of the Nifty Open Interest (OI) data showed that the call side had the greatest OI at 22,500, with the 22,800 strike prices following closely behind. Choice Broking’s Mandar Bhojane, a research analyst, claimed that the 22,200 strike price was the place where the most open interest (OI) was seen on the put side.
After four consecutive days of gains, the Nifty 50 index ended March 5 down 49 points.
There was no clear winner in another day of skirmishes between bulls and bears. The index has maintained its position above the short-term moving average, indicating that the sentiment is still optimistic. According to Rupak De, a senior technical analyst at LKP Securities, the Relative Strength Index (RSI) is displaying a bullish crossover.
If he is correct, Nifty 50 must break out above 21,400 before it can consider a possible climb to 22,600 and beyond. Support is located at 22,200 on the downside.
On Tuesday, the Bank Nifty index closed the day 125 points higher at 47,581, outperforming the Nifty 50.
“The Bank Nifty bulls maintained their control, holding firm above the crucial support level of 47,400,” stated Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
If the index manages to break over its immediate barrier at 48,000, it will likely continue its ascent towards its all-time high. Any drops toward the stated support level are seen as opportunities to purchase, according to Shah, who added that the overall perspective is still bullish.