Nifty 50, Sensex on April 5: What to expect in trade today

The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around 22,559 level, a discount of 52 points from the Nifty futures’ previous close.

On Thursday, the domestic equity indices snapped a two-day losing run and ended higher ahead of the RBI monetary policy decision.

The Sensex gained 350.81 points to close at 74,227.63, while the Nifty 50 settled 80.00 points, or 0.36%, higher at 22,514.65.

Nifty 50 formed a small negative candle on the daily chart with a long lower shadow. 

“This pattern indicates presence of strong resistance at the new all-time highs and the sharp buying is emerging from the lower levels. Still the market is not able to generate enough strength for a decisive upside breakout of 22,550 – 22,600 levels,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

Also Read: Indian stock market: 8 key things that changed for market overnight – Gift Nifty, US jobless claims to oil price rally

He believes the near-term uptrend of Nifty remains intact and we observe smaller degree positive patterns like higher tops and bottoms as per daily timeframe chart. A decisive move above 22,550 – 22.600 levels could open the next upside towards 22,800 levels, he added.

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

Nifty OI Data

Examining the Nifty Open Interest (OI) data, the highest OI on the call side is observed at the 22,800 strike price, followed by the 23,000 strike price. Conversely, the highest OI on the put side is seen at the 22,300 strike price, noted Mandar Bhojane, Research Analyst at Choice Broking.

Nifty 50 Prediction

The Nifty 50 index showed high volatility of up and down swings near new all-time highs on April 4 and finally closed the day higher by 80 points.

“The Nifty remained highly volatile as the index fluctuated within the range of 22,300 and 22,600 throughout the day. On the daily chart, the index has formed a hanging man pattern, indicating a potential bearish reversal in the short term,” said Rupak De, Senior Technical Analyst, LKP Securities.

According to him, immediate support is positioned at 22,300; a decisive drop below this level could lead the index towards 22,000-21,900 in the short term. On the upside, resistance is observed at 22,600-22,650.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — April 5

Bank Nifty Prediction

The Bank Nifty index ended 437 points higher at 48,061 on Thursday, forming a Doji candlestick pattern on the daily charts.

“Following a strong resurgence, the Bank Nifty surged past the significant resistance level of 48,000, coinciding with the peak open interest on the call side. The immediate support for the index has now shifted to 47,500, where the highest open interest is concentrated on the put side,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

Post the RBI policy announcement, sustaining above the 48,000 level is crucial for the continuation of the uptrend towards the 49,000/ 50,000 levels, Shah added.

Catch RBI Monetary Policy 2024 LIVE Updates here

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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Published: 05 Apr 2024, 07:31 AM IST

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