If Gift Nifty patterns are to be believed, the Indian benchmark index is off to a somewhat bullish start. Near the 22,460 level, the Gift Nifty was trading at a premium of more than 10 points from the previous closing of the Nifty futures.
Following a bearish engulfing, Nifty 50 created a neutral candlestick pattern on the daily chart, indicating that the market is still under bearish pressure.
As their worldwide counterparts rose, the Sensex and Nifty 50 indexes of India’s stock market are likely to open flat or slightly higher on Wednesday.
If Gift Nifty patterns are to be believed, the Indian benchmark index is off to a somewhat bullish start. Near the 22,460 level, the Gift Nifty was trading at a premium of more than 10 points from the previous closing of the Nifty futures.
After a volatile day on Tuesday, the major U.S. market indexes finished flat, slightly in the green.
While the Nifty 50 edged up 3.05 points, or 0.01%, to end at 22,335.70, the Sensex rose 165.32 points, or 0.22%, to conclude at 73,667.96.
Following a bearish engulfing, Nifty 50 created a neutral candlestick pattern on the daily chart, indicating that the market is still under bearish pressure.
As of this writing, the bearish Evening star pattern that emerged during the prior session remains intact. For the time being, Nifty might remain within the range of 22,224–22,526. Investors and traders are feeling the weight of bad breadth data, according to Deepak Jasani, Head of Retail Research at HDFC Securities.
The call side had the most Open Interest (OI) at 22,500 according to the data analysis, followed by the 22,600 strike prices. The 22,000 strike price had the largest open interest (OOI) on the put side, according to Choice Broking’s Mandar Bhojane, a research analyst.
A long-legged doji candle was formed by the Nifty 50 index on March 12, which ended flat at 22,336 despite strong volatility.
Traders saw the Nifty index go through a roller coaster of an ups and downs during the day. When a doji candle forms, it means the market is still unsure about where it wants to go, but a break out could cause price action to follow a trend. Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, stated that 22,500 is the nearest level of resistance for Nifty and that a closing basis break over this would indicate that the upward movement would resume.
On the other hand, Shah thinks that 22,200–22,150 is where the immediate support is, and that if the index can stay above this level, it might see a comeback.
A large number of short straddles were created near the 22,500 levels on the Nifty 50 index for this monthly expiry, according to Rahul Ghose, CEO of Hedged.in.
Accordingly, the market players anticipate an expiration in the 22,000–22,900 range. The index has a firm floor at 22,000, therefore according to Ghose, a long position would be a good idea between 22,150 and 22,000 or once prices settle beyond 22,500.
The importance of waiting for critical levels to enter and not trying to pursue prices was emphasized by him, as Tuesday’s knee-jerk reaction on both sides highlighted.
On Tuesday, the Bank Nifty index closed at 47,282 after losing 45 points.
After enduring tremendous swings, the Bank Nifty index found stability near the 46,800 level, where the 20-DMA (Day Moving Average) provides support. According to Shah, there is heavy resistance at the 47,800 level. If prices were to break above this level, it would open the door to all-time highs.
As long as those support levels remain intact, the Bank Nifty index, according to Shah, would maintain its “buy on dip” position.