In response to conflicting signals from international markets, the Indian stock market indices, the Sensex and Nifty 50, are probably going to open flat to lower on Monday.
The Indian benchmark index is off to a slow start, according to Gift Nifty’s statistics. The Gift Nifty was down around 25 points from the previous closing of the Nifty futures, trading at about 24,925.In response to conflicting signals from international markets, the Indian stock market indices, the Sensex and Nifty 50, are probably going to open flat to lower on Monday.
The Indian benchmark index is off to a slow start, according to Gift Nifty’s statistics. The Gift Nifty was down around 25 points from the previous closing of the Nifty futures, trading at about 24,925.
On Friday, the domestic equity market indices closed higher, breaking a three-day losing streak.
The Sensex gained 218.14 points to close at 81,224.75, while the Nifty 50 settled 104.20 points, or 0.42%, higher at 24,854.05.
Nifty 50 formed a ‘high wave’ candlestick pattern in the weekly time frame and ‘Marubozu’ in the daily timeframe at the 20 EMA (Exponential Moving Average).
What to anticipate from the Nifty 50 and Bank Nifty today is as follows:
Nifty OI Information
Significant open interest (OI) on the put side is visible at the 25,500 level, according to Nifty’s options data, suggesting possible support there. Significant OI concentrations are seen at the 25,000 and 25,500 levels on the call side. Mandar Bhojane, a technical analyst at Choice Broking, recommended traders and investors to search for buying opportunities on Nifty falls and to position suitable stop-loss strategies below the designated support levels.
Nifty 50 Prediction
Nifty 50 rallied 104.20 points, or 0.42%, to close at 24,854.05 on October 18, forming a positive candle on the daily chart with minor lower shadow.
“Nifty 50, on its daily chart, has created a positive divergence. Nifty 50 also bounced from its critical support of 24,700 levels, as expected. The momentum indicators show signs of recovery from the fall with today’s rally. However, the ADX DI- line is yet to trend down, which is only a concern technically for the index to move upside,” said Dr. Praveen Dwarakanath, Vice President of Hedged.in.
Bank Nifty Prediction
Bank Nifty index closed 805.40 points, or 1.57%, higher at 52,094.20 on Friday, forming a bullish candlestick pattern on the daily charts.
“Bank Nifty bounced from its support at 51,000 levels. The daily chart shows the RSI line crossing over the RSI average line and a drop in the ADX DI- line, indicating the index to continue upside to its resistance at 52,500 levels. The daily candle has formed a bullish engulfing candle with a break of immediate resistance at 52,000 levels, indicating upside momentum to continue,” said Dwarakanath.
He said that data from options writers indicated short covering in the ITM calls of monthly expiry, which may have contributed to Friday’s index surge. A rise in put writing also suggests that the index will rise above its present levels.
According to Agarwal, the Bank Nifty index experienced a significant decline from its critical support zone of 51,000 during Friday’s session, closing above 52,000 levels.
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