The SGX Nifty recorded a gain of 0.28% during Monday’s early trading session, with a value of 18,662, indicating a positive opening for the domestic indices NSE Nifty 50 and BSE Sensex. On Friday, domestic indices closed in the red. The NSE Nifty 50 tanked 66 points to 18,568 and BSE Sensex slipped 0.33% to 62,641.
The S&P 500 rose by 0.11%, extending its four-week winning streak, the longest since July-August 2022. The Nasdaq Composite achieved its seventh straight week of gains, increasing by 0.16% daily and 0.13% weekly. The Dow Jones Industrial Average climbed 0.13%, resulting in a 0.33% weekly gain.
NSE Nifty 50 Outlook
Nifty 50 formed bearish pattern
“Nifty fell for the second consecutive session on 9 June. It gained 0.16% over the week after giving up the gains early in the week. It formed a bearish pattern on weekly charts. A close below 18,508 could result in acceleration in the downtrend. On up moves, 18,726 could act as a resistance,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
Nifty maintains positive structure
“Despite positive global cues, Indian equities are witnessing profit booking at higher levels and seem to be taking a pause after Nifty saw a run-up of ~7% over the last two months. However, the overall structure remains positive with Nifty gradually moving towards its previous lifetime high,” said Siddhartha Khemka, Head – Retail Research, MOFSL.
Undertone of Nifty now sideways
“Selling pressure was seen in the index, and the NSE Nifty 50 closed at 18,563 in spot. The undertone of the index has turned sideways from bullish, where 18,500 in spot remains the support where maximum open interest has been seen in put data and 18,700 is the new resistance for the Nifty where maximum call writing is been seen,” said Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities.
Nifty 50 could rally to 18,900
“Technically, the Nifty took resistance near 18,775 and reversed sharply. As long as the index is trading below 18,675, the weak sentiment is likely to continue and below the same it could slip till 20 day SMA (Simple Moving Average) or 18,450. Further down side may also continue which could drag the index till 18,350. On the flip side, a fresh uptrend rally is possible only after the dismissal of 18,675 and above the same the market could rally till 18,800-18,900,” said Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities.
Bank Nifty Outlook
Bank Nifty key level to watch at 44,000
“The Bank Nifty is witnessing a non-directional activity and perhaps traders are waiting for either side to breakout. For the bulls now, 44,000 would be the immediate resistance zone while 43800 could act as a key support level. Above 44,000, the Bank Nifty could rally till 44,500 whereas below 43,800 the selling pressure is likely to accelerate and may retest the level of 43,500-43,300,” said Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities.
Bank Nifty has strong support at 43,700
“The Bank Nifty index is currently experiencing selling pressure as the bears maintain their control at higher levels. The resistance zone between 44,300 and 44,500 has proven to be strong, preventing the index from making significant upward moves. On the downside, there is a support level at 43,700, which has the potential to act as a buying opportunity. If the index manages to hold above this support level, it could attract buyers who see it as a favorable entry point,” said Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities.
(The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)