Stock Market Today, Nifty, Bank Nifty: Domestic equity indices may remain in the positive territory on the first day of the week. The Nifty futures in Singapore Exchange (SGX) were trading 72 pts or 0.41% higher at 17,704.00 in the early morning trade. Asian markets were trading mixed with China’s Shanghai Composite index falling 0.21%, Hong Kong’s Hang Seng dropping 0.28% while Japan’s Nikkei 225 rose 1.17%, and South Korea’s KOSPI climbed 0.53%. The US markets ended Friday’s session broadly in green with Dow Jones Industrial Average rising 1.17%, S&P 500 surging 1.61% and the tech-heavy Nasdaq skyrocketing 1.97%.
On Friday, the NSE Nifty 50 surged 272.45 points or 1.57% to 17,594.35 and BSE Sensex skyrocketed 899.62 pts or 1.53% to 59,808.97. Sectoral indices ended in green with Bank Nifty climbing 861.55 pts or 2.13% to 41,251.35 and PSU Bank soared 203.40 pts or 5.40% to 3,970.15. ”The market had more reasons to cheer Friday than to worry about concerns regarding inflation. PSU Banks led the sectoral rally as reports of foreign investments in Adani stocks helped the sector in recouping the dampened sentiments. The sentiment was further lightened as FIIs turned in strong buyers. Positive global sentiments also played a vital role in uplifting the market, as a Fed official commented on a favourable level of a rate hike in the next meeting,” said Vinod Nair, Head of Research at Geojit Financial Services.
“Nifty is forming a downward-sloping channel by connecting the lower highs and lower lows formations. In a short covering bounce, it regained its 200-day moving average. 17750 is acting as an immediate hurdle; above this, we can expect a short-covering rally toward 17900. It will be difficult to chase a gap-up opening, but if Nifty manages to hold its initial gain, then positive momentum may continue. 17500/17350 will act as immediate support during any correction,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
Nifty crucial resistance at 17700-17850
“Nifty has formed a double bottom near the 200-day SMA (Simple Moving Average) and bounced back sharply. The index has also formed a promising bullish candle on daily and weekly charts which supports a further uptrend from the current levels. For short-term traders 17550-17500 would be the immediate support level while 17700-17850 is the crucial resistance,” said Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities Ltd.
Nifty short-term trend remains negative
“Nifty short-term trend remains negative as the index has closed below the critical short-term moving average. The momentum oscillator RSI is in a bullish crossover on the daily timeframe. On the higher end, the Nifty may move higher once it moves above 17650; on the higher end, resistance is visible at 17800. On the lower end, support is visible at 17470,” said Rupak De, Senior Technical Analyst at LKP Securities.
Crucial for Nifty to sustain above 17500
“Nifty has managed to sustain and break the previous 7 days’ high and has finally managed to break the losing streak. Nifty has closed above its crucial level of 17500 and managed to close above 17550. It will be crucial for Nifty to sustain above the 17500 level in the next few days for further rallies. A move till 17800 can be seen if these levels are sustained. Nifty has managed to close above 200 EMA. On the derivatives front, the highest call OI is at 17900 strike price while on the put side, the highest OI remains at 17500 strike price,” said Ameya Ranadive, CMT, CFTe, Equity Research Analyst at Choice Broking.
Nifty to trade in range of 17700-17200
“On the daily charts, we can observe that the Nifty is in a pullback mode and currently retraced 38.2% of the fall from 18134 to 17255. We believe that there is more steam left to this pullback rally and hence it can extend higher till 17700 where resistance in the form of the 50% Fibonacci retracement level (17695) and the 20-day moving average (17703) is placed. Considering the sharp-up move in Friday’s trading session a consolidation cannot be ruled out. Overall, we expect the Nifty to trade in the range of 17700 – 17200 from a short-term perspective,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Bank Nifty outlook today
Bank Nifty support at 40927 and then 40439
“Bank Nifty support is placed at 40927 and 40439 while resistance is placed at 41732 and 42048,” said Rahul Sharma, JM Financial.
Bank Nifty resistance at 41800
“Bank Nifty has taken support at 200 EMA and managed to take a bounce from it. A good rally was seen in Bank Nifty where all stocks were participating. If Bank Nifty Manages to sustain 41000 in the next few days we can see a good rally till 41950 to 42300 this week. Bank Nifty has support at 40300 levels while resistance is placed at 41800,” said Ameya Ranadive, CMT, CFTe, Equity Research Analyst at Choice Broking.
Bank Nifty likely to touch 42000
“Bank Nifty bulls came back strong and surpassed the hurdle of 40,800 with a sharp surge in volumes. The momentum indicator has given a positive crossover on the daily chart which confirms the buy signal. The index is likely to touch the level of 42,000 where fresh call writing has been observed,” said Kunal Shah, Senior Technical & Derivatives Analyst at LKP Securities.
Bank Nifty immediate support at 41000
“Bank Nifty successfully cleared the 20-day SMA mark which is broadly positive. For the Bank Nifty, 41000 or 20-day SMA could be the immediate support zone. Above which, it could move till 41700-42300 levels,” said Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities Ltd
Bank Nifty short-covering rally toward 42700 level expected
“Bank Nifty formed a double bottom pattern as it is outperforming the benchmark indices. 41550/42000 is an immediate resistance level. Above 42000, we can expect a short-covering rally toward the 42700 level, while 41000 and 40700 will be the support levels on the downside,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.