The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around the 22,460 level, indicating a discount of nearly 140 points from the Nifty futures’ previous close.
Expert Insights
Senior Technical Research Analyst, HDFC Securities, Nagaraj Shetti, highlighted the formation of a crucial top reversal pattern on the Nifty 50 daily chart, indicating potential weakness in upcoming sessions. He emphasized the significance of the resistance trendline and Fibonacci projection around 22,800 levels in influencing market sentiment.
Technical Analysis
On the weekly chart, Nifty 50 formed a small negative candle with an upper shadow, indicating a potential reversal pattern formation. Senior Technical Analyst, LKP Securities, Rupak De, emphasized observed support at 22,500 on a closing basis, suggesting a short-term negative sentiment unless the index maintains above this level.
Market Predictions
Rupak De suggested that sustained trading above 22,500 could drive the index towards 22,650 – 22,700 levels. Conversely, a drop below 22,500 might initiate a correction of 200-250 points on the downside.
Bank Nifty Analysis
The Bank Nifty index experienced significant selling pressure, marking a return of bearish momentum after a prolonged period. Senior Technical & Derivative Analyst at LKP Securities, Kunal Shah, highlighted strong resistance at the 49,000 mark, with immediate support established at 48,000. A breach below this level could intensify selling pressure.
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