The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 23,285 level, a discount of nearly 50 points from the Nifty futures’ previous close.
On Friday, the domestic equity indices ended at record closing highs after the Reserve Bank of India (RBI) policy outcome.
The Sensex surged 1,618.85 points, or 2.16%, to close at 76,693.36, while the Nifty 50 settled 468.75 points, or 2.05%, higher at 23,290.15.
Nifty 50 formed a long bull candle on the daily chart on Friday, that has reached the important upper trajectory of the upper part of Tuesday’s long bear candle at 23,200 levels.
“Hence, the sharp fall of Tuesday (election result day) has been regained in just three sessions. This is a positive indication. The short-term trend of Nifty continues to be positive,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, having reached the overhead resistance of around 23,300 – 23,400 levels, there is a possibility of minor dip in the market from the highs in the short term and that could be a buying opportunity.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Prediction
Nifty registered another significant upmove on June 7 and closed the day with sharp gains of around 2%.
“The short-term trend looks very positive as the index closed near an all-time high. Going forward, the market remains a buy on dips as long as 23,000 is not broken. On the higher end, the index might move towards 23,500 – 23,600,” said Rupak De, Senior Technical Analyst, LKP Securities.
On the lower end, he believes profit booking might occur only below 23,000.
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V.L.A. Ambala, Co-founder, Stock Market Today (SMT) suggests short-term traders remain cautious of the market movements in this new week.
“Nifty’s technical indicator suggests the market valuation remains on the higher side, with the RSI pointing at 76 on the monthly, 66 on the weekly and 59 on the daily timeframe. Collectively, it underscores the market’s high volatility condition which is expected to widen in the upcoming days,” Ambala said.
In this situation, she recommends staying invested and tracking the price movements for potential 5-15% dip-buying opportunities in the broader market index.
Keeping these in mind, it is likely the Nifty will gain support between 23,200 and 23,120, and find resistance between 23,500 and 23,720 levels in the next trading session, Ambala added.
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Bank Nifty Prediction
The Bank Nifty index rallied 511.30 points, or 1.04%, to close at 49,803.20 on Friday.
“Bank Nifty has shown bullish momentum, taking support near its 10-day moving average and forming a bullish engulfing candle on the daily chart. It closed near its resistance level, indicating strong buying interest. The key resistance level for Bank Nifty is 50,500, while 49,200 will act as crucial support,” De said.
This setup suggests potential for further upward movement if the resistance is breached, he added.
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 making any investment decisions.
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Published: 10 Jun 2024, 07:35 AM IST
