The Indian stock market indices, Sensex and Nifty 50, are likely to open flat on Friday ahead of the Reserve Bank of India’s (RBI) monetary policy outcome later today.
The Sensex gained 692.27 points, or 0.93%, to close at 75,074.51, while the Nifty 50 settled 201.05 points, or 0.89%, higher at 22,821.40.
Nifty 50 PredictionNifty 50 index continued with follow-through upmove on June 6 and closed the day higher by 201 points.
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Also Read: Stock market today: Trade setup for Nifty 50 to RBI MPC meeting, five stocks to buy or sell on Friday — June 7Bank Nifty PredictionBank Nifty index gained 237 points to close at 49,292 on Thursday.
The Indian stock market indices, Sensex and Nifty 50, are likely to open flat on Friday ahead of the Reserve Bank of India’s (RBI) monetary policy outcome later today.
The trends on Gift Nifty also indicate a flat start for the Indian benchmark index. The Gift Nifty was trading flat at around 22,920 level.
On Thursday, domestic equity indices closed higher, with the Nifty 50 holding above 22,800 level.
The Sensex gained 692.27 points, or 0.93%, to close at 75,074.51, while the Nifty 50 settled 201.05 points, or 0.89%, higher at 22,821.40.
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Nifty 50 formed a small positive candle on the daily chart with upper and lower shadow.
“Technically, this pattern indicates a high wave type candle pattern, which displays ongoing high volatility in the market at the highs. Technically, such a high wave pattern after a reasonable upmove calls for a caution for impending reversal. But, having formed this pattern after one day of upmove, the negative implication of this pattern could be less," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He believes the short-term trend of Nifty continues to be positive amidst high volatility. Having moved above the hurdle of 22,250 levels (midpart of Tuesday’s long bear candle) recently, the Nifty could move towards the next upper hurdle of 23,200 (upper part of long bear candle) in the near term.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
Regarding the Open Interest (OI) data, Mandar Bhojane, Research Analyst at Choice Broking noted that on the call side, the highest OI was observed at the 23,000 and 23,300 strike prices. On the put side, the highest OI was at the 22,000 strike price.
Nifty 50 Prediction
Nifty 50 index continued with follow-through upmove on June 6 and closed the day higher by 201 points.
“The Nifty continued to rise after a bullish harami pattern formation on Wednesday on the daily timeframe. However, on Thursday, the index remained range-bound, oscillating between 22,650 and 22,900. The India VIX has slipped sharply below 17 in the last two days, signaling low volatility. In the near term, the index might continue remaining within the bands of 22,600 - 23,000," said Rupak De, Senior Technical Analyst, LKP Securities.
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V.L.A. Ambala, Co-founder - Stock Market Today (SMT) is of the view that Nifty demonstrated a sense of uncertainty in the broader market, forming a long-legged candlestick pattern. The benchmark Index was also seen trading with an RSI of 54 on the daily and 63 on the weekly timeframe, suggesting some level of overbought situation on the higher timeframe.
“I recommend investors closely follow price movements to identify lucrative dips when the broader market offers a 7-10% dip at index levels. Factoring these, I expect Nifty to find support between 22,700 and 22,600 levels and face resistance between 22,920 and 23,000 levels in the next trading session," Ambala said.
Also Read: Stock market today: Trade setup for Nifty 50 to RBI MPC meeting, five stocks to buy or sell on Friday — June 7
Bank Nifty Prediction
Bank Nifty index gained 237 points to close at 49,292 on Thursday.
“Bank Nifty closed above 49,200, forming an indecisive candle, indicating market uncertainty. It found support near its 10-day moving average, suggesting a potential rebound. Sustaining above the 21-day moving average, it shows a bullish trend," De said.
According to him, key levels to watch are 48,600 as crucial support and 49,800 as resistance, determining the market’s direction ahead.
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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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