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The trends on Gift Nifty also indicate a flat-to-positive start for the Indian benchmark index. The Gift Nifty was trading around 22,245 level, a premium of nearly 20 points from the Nifty futures’ previous close.
On Monday, the Indian stock market indices ended the volatile session higher led by fag-end buying.
The Sensex gained 111.66 points, or 0.15%, to close at 72,776.13, while the Nifty 50 settled 48.85 points, or 0.22%, higher at 22,104.05.
Nifty 50 formed a ‘Bullish Hammer’ candlestick pattern on the daily chart, which indicates short term bullish trend reversal.
“Hence, a move above Monday high could lead to positivity in the near term. The low of 21,827, which coincides with the 100 DEMA (Exponential Moving Average) will be seen as an important support and should be seen as a key level for stop losses on long positions now. On a pullback move, the resistance will be seen around the 22,200 – 22,270 range followed by 22,310,” said Ruchit Jain, Lead Research, 5paisa.com.
He advises traders to look for stock specific buying opportunities, but avoid aggressive positions and keep Friday’s low as a reference level for stop-loss on long positions at Nifty level.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
Coming to the Nifty Open Interest (OI) Data, on the call side, the highest OI is observed at 22,300 followed by 22,500 strike prices while on the put side, the highest OI is at 22,000 strike price, said Deven Mehata, Research Analyst, Choice Broking.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — May 14
Nifty 50 Prediction
The Nifty 50 index gained 49 points to close above 22,100 level on May 13.
“The Nifty has formed a hammer pattern on the daily chart, indicating a potential bullish reversal following a correction. Additionally, the stock has found support around the previous swing low on the daily timeframe. However, the index’s recovery may encounter resistance in the 22,150 – 22,200 zone, and only a decisive move above 22,200 could trigger a stronger rally in the market,” said Rupak De, Senior Technical Analyst, LKP Securities.
On the lower end, he said that the support for Nifty was situated at 21,950 level.
Judging by the current levels, V.L.A. Ambala, Co-founder, Stock Market Today (SMT) is of the view that the next session can witness sectors like metals, FMCG, IT, and media taking center stage.
“It is likely that the Nifty would retest its 22,235 range, which is marked as a key resistance level. The index formed a ‘Double Top’ pattern, suggesting a bearish outlook in the short term, and it also found support from its previous support range, Neckline, at the 21,800 level. However, the index is currently in a high buying zone, with its current RSI being at 70 on the monthly timeframe,” said Ambala.
In this situation, he says, it will be wise to perceive the positional view as bearish and cover or hedge positions to protect capital.
Also Read: Stock market today: 9 stocks under F&O ban list on May 14
Bank Nifty Prediction
The Bank Nifty index broke the 9 day losing streak to close with the gain of 333 points at 47,754.
“The Bank Nifty index saw a strong recovery from lower levels and managed to hold onto its support at the 100-day exponential moving average (EMA). There’s a potential for a pullback towards its 20-day moving average (DMA), positioned at 48,200,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
As long as the index maintains the support level of 47,200 on the downside, where bullish activity is evident, the index remains in a buy mode, Shah 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: 14 May 2024, 07:28 AM IST
