Nifty 50, Sensex on October 30: 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 19,100 level as compared to the Nifty futures’ previous close of 19,145.
On Friday, the domestic benchmark indices witnessed a strong rebound after days of persistent selling. Sensex and Nifty 50 closed the week gone by 2.5% lower.
However, the Sensex surged 634.65 points to settle at 63,782.80, while the Nifty 50 jumped 190.00 points to 19,047.25 on October 27.
Nifty 50 formed a long bull candle on the daily chart with a gap up opening.
“Technically, this pattern indicates a short term bottom reversal for the Nifty. Friday’s unfilled opening upside gap could now be considered as a bullish breakaway gap. If the said gap remains open for the next 1-2 sessions, then one may expect more upside bounce ahead,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Also Read: 6 things that changed for the stock market over the weekend – Gift Nifty, US stocks to FII outflow
He believes the short-term trend of Nifty 50 seems to have reversed on the upside and the sustainability of this upside bounce could be crucial to call this as an important bottom reversal.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50
After relentless selling in recent days, the Nifty has temporarily paused its decline due to an oversold chart setup.
“However, the index closed significantly below the critical breakdown level of 19,250. As long as it stays below 19,250, the market may continue to be inclined towards selling on any upward movements,” said Rupak De, Senior Technical Analyst at LKP Securities.
On the downside, he believes, a resumption of weakness is expected if the index falls below 18,800.
“This is because put writers are likely to defend the Nifty with substantial positions at 18,800, with immediate support placed at 19,000,” De said.
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Bank Nifty
The Bank Nifty index saw a strong pull back on October 27 and closed 1.2% higher at 42,782.
“After a consolidation breakdown on the daily chart, Bank Nifty experienced a 2,000-point correction in a short span of time. The index appeared somewhat oversold, leading to a pullback on Friday. However, the sentiment remains predominantly bearish, and any upward movements may still face selling pressure,” De said.
On the upper side, he expects, 43,000 could serve as a significant resistance level, as call writers have established substantial positions there. Support can be observed at 42,500, where writers have a strong presence, he added.
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Updated: 30 Oct 2023, 07:43 AM IST
