The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 22,120 level as compared to the Nifty futures’ previous close of 22,000.
The domestic equity indices bounced back on Tuesday and ended over half a percent higher with the Nifty 50 closing above 21,900 level.
The Sensex jumped 454.67 points to close at 72,186.09, while the Nifty 50 settled 157.70 points, or 0.72%, higher at 21,929.40.
Nifty 50 formed a long bull candle on the daily chart that has almost engulfed the bearish candle of Monday.
“This pattern is signalling that the bearish candle pattern formation of the last two sessions (Friday and Monday) could be nullified soon. This is a positive indication. Minor positive pattern like higher tops and bottoms is intact and the market is now on the way up towards the new higher top formation at new all-time highs,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
Also Read: Indian stock market: 7 key things that changed for market overnight – Gift Nifty, oil prices to China markets rally
He believes the crucial opening downside gap of January 17 is now placed at the verge of decisive upside breakout at 21,970 levels.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty Prediction
Nifty 50 ended 158 points higher on February 6 and formed a hammer candlestick pattern with substantial volume, suggesting a bullish momentum in the index.
“The Nifty exhibited a predominantly sideways trend throughout the day, with traders expressing uncertainty regarding the market’s direction. A range-bound movement is expected to persist until a breakout occurs on either side. A decisive upward move beyond 21,950 has the potential to propel the Nifty towards 22,200,” said Rupak De, Senior Technical Analyst, LKP Securities.
Conversely, he believes a decline below 21,850 could instigate a correction towards the 21,700 level.
Also Read: Day trading guide for stock market today: Seven stocks to buy or sell on Wednesday — 7th February
Bank Nifty Prediction
The Bank Nifty index underperformed the benchmark indices and ended 135 points lower at 45,691 on February 6.
“The Bank Nifty index experienced a subdued trading session one day ahead of the weekly expiry, with an ongoing struggle between bears and bulls. The lack of a clear trend indicates that a breakout is awaited to determine the market direction. The support is positioned at 45,500, while the immediate hurdle lies at 46,000,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
According to Shah, a successful break above 46,000 is anticipated to propel the index towards 46,500 on the upside.
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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Published: 07 Feb 2024, 07:37 AM IST