The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around 19,520 level as compared to the Nifty futures’ previous close of 19,616.
On Thursday, the domestic benchmark indices ended lower for the second consecutive session amid volatility. The Sensex closed 247.78 points lower at 65,629.24, while the Nifty 50 declined 46.40 points to settle at 19,624.70.
Nifty 50 formed a small positive candle on the daily chart with an upper shadow.
“Technically, this market action indicates an emergence of buying interest from the lower levels. The overall chart pattern remains weak with range-bound action. Further weakness from here, the Nifty finds support around 19,480-19,450 levels and any upside bounce from here could encounter resistance around 19,700 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
According to him, a decisive break above this hurdle could pull Nifty towards another hurdle of 19,850 levels.
Here’s what to expect from Nifty and Bank Nifty today:
Nifty slipped below the consolidation range low of 19,650 and closed below it for the day.
“However, the 55EMA acted as a support on a closing basis. In the short term, the index might remain volatile, and a move above 19,650 could take the index towards 19,850,” said Rupak De, Senior Technical analyst at LKP Securities.
However, he believes a failure to move above 19,650 might result in selling pressure once again.