Indian stock market benchmarks Sensex and Nifty 50 are expected to open lower on Monday, tracking weak signals from the global market.

Trends on Gift Nifty also indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around the 24,735 level, a discount of almost 50 points to the previous close of Nifty futures.

Domestic stock market indices closed marginally lower on Friday after the Reserve Bank of India’s (RBI) monetary policy announcement.

THE Sensex fell 56.74 points to close at 81,709.12, while the Nifty 50 settled 30.60 points, or 0.12 per cent, lower at 24,677.80.

Nifty 50 formed a small red candle on the daily chart with a minor upper and lower shadow.

“Technically, this market action indicates respite type action after a strong upward recovery from the previous session’s lows. Such consolidations during an uptrend movement in the underlying are considered a buying opportunity on dips,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

Nifty 50 on the weekly chart formed a long bullish candle with a minor upper shadow.

“The weekly candle pattern signals a strong breakout to the upside that confirmed a significant upside trend reversal. Weekly hurdles like 10- and 20-period EMA (exponential moving average) have been breached on the upside around 24,380/24,350 levels respectively,” Shetti said.

According to him, the near-term trend of the Nifty 50 remains positive and after surpassing the crucial hurdle of 24,400-24,500 levels as per increasingly larger time charts, there is scope for further upside over the course of the year. coming week.

“Further consolidation or minor weakness early next week could provide a buying opportunity. The next upside targets to watch are around the 25,000 to 25,200 levels for the next two weeks. The immediate support is 24,525,” Shetti added.

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

Nifty 50 Prediction

The Nifty 50 moved into a respite trend with a minor weak bias on December 6 and closed the day down 30 points.

“The Nifty 50 continues to hold above the breakout of an inverted head-and-shoulders pattern, indicating the underlying strength of the market. Under such conditions, adopting a buy-on-the-dip strategy seems prudent, especially with the potential for a rise towards 25,500 in the near term. However, minor pullbacks following a strong rally are possible, further highlighting the effectiveness of buying on the dip to capitalize on this trend,” said Rupak De, Senior Technical Analyst at LKP Securities.

VLA Ambala, co-founder of Stock Market Today noted that during Friday’s session, the market saw a key technical pattern, as Nifty 50 formed a long-legged doji candlestick above the EMA of 50 days, with its RSI at 60, hinting at possible bullish momentum.

“I advise investors to focus on small and mid-cap stocks that are well positioned to benefit from the growth prospects of the index. Amid these developments, Nifty may find support near 24,630 and 24,520 and encounter resistance between 24,740 and 24,850 in the next trading session,” Ambala said.

Bank Nifty Prediction

The Bank Nifty index fell 94.05 points, or 0.18%, to close at 53,509.50 on Friday, forming a small bearish candlestick pattern on the daily charts.

“Bank Nifty gained strength during the week by breaking above the tough resistance barrier of 52,600 area and with a strengthening bias, it is close to the previous peak area of ​​54,500 levels which can be retested in future sessions. The index would get strong support from the 50-EMA zone of 51,900 levels which needs to be maintained for the time being,” said Vaishali Parekh, Vice President, Technical Research, PL Capital – Prabhudas Lilladher.

According to her, Bank Nifty would have a weekly range of 52,000 to 55,200 levels.