Indian stock market benchmarks Sensex and Nifty 50 are expected to open higher on Friday, following gains in global markets.

Trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around the 23,440 level, a premium of almost 90 points to the previous close of Nifty futures.

On Thursday, domestic equity benchmarks each ended down more than half a percent, with the Nifty 50 closing below the 23,400 level.

THE Sensex fell 422.59 points, or 0.54 percent, to close at 77,155.79, while the Nifty 50 settled 168.60 points, or 0.72 percent, lower at 23,349.90 .

Nifty 50 formed a reasonable negative candle on the daily chart with a minor lower shadow.

“Technically, this market action signals a continued downtrend in a bearish sequence like lower highs and lower lows on the daily chart. The crucial support of the 200-day EMA (Exponential Moving Average) was once again broken around 23,500 levels after a recent failed bullish rebound. Short-term market action after this downside breakout will be crucial,” said Nagaraj Shetti, senior technical research analyst at HDFC Securities.

According to him, if Nifty does not show any marked weakness in the next 1-2 sessions, then the chances of another upward bounce could come into play.

“The short-term trend of Clever 50 continues to be weak and the market is expected to fall to 23,200-23,100 levels in the near term,” Shetti said.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty 50 Prediction

Nifty 50 continued its bearish momentum on November 21 and closed the day down by 168 points.

“The Nifty 50 index remained below the 200 moving average, indicating continued weak sentiment in the market. The RSI indicator entered a bearish crossover, further supporting the negative sentiment. In the short term, sentiment remains weak, with support placed at 23,200. A fall below this level could trigger a market correction. On the upside, resistance is placed at 23,550; a decisive move above this level could trigger a market rally,” said Rupak De, senior technical analyst at LKP Securities.

Jatin Gedia, technical research analyst at Sharekhan by BNP Paribas, observed that on the daily charts, the Nifty 50 witnessed back-to-back selling pressure from the previous trading session.

“It has crossed the low of 23,350 and is now heading towards 23,180. On the upside, 23,500, which is the 20-day moving average, will act as an immediate hurdle zone in a short-term perspective,” said Gedia.

VLA Ambala, co-founder, Stock Market Today noted that Nifty 50 has plunged nearly 12% in the last two months and could fall another 4-5% in the coming weeks.

“The index is 5% below its 20-month EMA, with a monthly RSI of 62. In such situations, I recommend investors adopt a “sell up” strategy. Intraday, Nifty closed near the 23,350 level, forming a bearish ‘Marabozu’ candlestick pattern. So, in the next session, Nifty may oscillate near the support at 23,180 and 23,100 and meet resistance around 23,360 and 23,440,” Ambala said.

Bank Nifty Prediction

Bank Nifty fell 253.60 points, or 0.5%, to close at 50,372.90 on Thursday, forming a bearish candlestick pattern with a long lower shadow on the daily charts.

“Nifty Bank took a sharp fall in early sessions and crossed 50,000 levels, but quickly recovered, showing the strength of the index against Nifty. Weekly momentum indicators continue to show weakness in the index, indicating that the index is likely to test its crucial support at the 49,500 levels. A breakout of the 49,500 level could bring the index back to the 48,000 level very soon,” said Dr. Praveen Dwarakanath, Vice President, Hedged.in.

According to him, monthly expiration data from options writers showed an increase in put sales of 50,500 and below and call sales of 50,500 and above, indicating limited movement at current levels.

“Bank Nifty tested the 200-day moving average (49,800) and saw buying interest from this support level. It closed down about 253 points, although well below intraday lows. The crucial support zone is thus placed between 50,000 and 49,800 while resistance is placed between 50,900 and 51,000,” said Jatin Gedia.

Disclaimer: The opinions and recommendations stated above are those of individual analysts or brokerage firms, and not of Mint. We advise investors to consult certified experts before making any investment decisions.