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Indian stock indices Sensex and Nifty 50 are expected to see a positive opening on Wednesday supported by gains in global peers.
Trends in Gift Nifty also indicate a gapped start for the Indian benchmark index. The Gift Nifty was trading around the 22,120 level compared to the previous close of 22,000 of the Nifty futures.
Domestic stock indices recovered on Tuesday and ended more than half a per cent higher with the Nifty 50 closing above the 21,900 level.
The Sensex jumped 454.67 points to close at 72,186.09, while the Nifty 50 closed 157.70 points, or 0.72 per cent, higher at 21,929.40.
Nifty 50 formed a long bullish candle on the daily chart that almost engulfed Monday’s bearish candle.
“This pattern indicates that the bearish candlestick pattern formation of the last two sessions (Friday and Monday) could be nullified soon. This is a positive indication. The minor positive pattern like higher highs and higher lows is intact and the market is now on the path towards fresh formation of higher highs at new all-time highs,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Also read: Indian Stock Market: 7 Key Things That Changed for the Market Overnight – Gift Nifty, Oil Prices in Chinese Markets Rise
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He believes that the crucial downside opening gap of January 17 is now on the verge of a decisive bullish breakout at 21,970 levels.
Here’s what you can expect from Nifty 50 and Bank Nifty today:
Clever prediction
Nifty 50 ended 158 points higher on February 6 and formed a hammer candlestick pattern with substantial volume, suggesting bullish momentum in the index.
“The Nifty showed a predominantly sideways trend throughout the day, with traders expressing uncertainty regarding the direction of the market. A range-bound move is expected to persist until a breakout occurs on either side. A decisive bullish move beyond 21,950 has the potential to push the Nifty towards 22,200,” said Rupak De, senior technical analyst at LKP Securities.
On the contrary, it believes that a drop below 21,850 could trigger a correction towards the 21,700 level.
Also read: Intraday Trading Guide for Today’s Stock Market: Seven Stocks to Buy or Sell on Wednesday, February 7
Nifty Bank Prediction
The Bank Nifty index underperformed the benchmark indices and ended 135 points lower at 45,691 on February 6.
“The Bank Nifty index saw a subdued trading session a day ahead of the weekly expiry, with an ongoing fight between bears and bulls. The lack of a clear trend indicates that a breakout is expected to determine the direction of the market. Support lies at 45,500 while immediate hurdle lies at 46,000,” said Kunal Shah, Senior Derivatives and Technical Analyst at LKP Securities.
According to Shah, a successful breakout above 46,000 is expected to push the index towards 46,500 higher.
Disclaimer: The opinions and recommendations above are those of individual analysts or brokerage firms, and not those of Mint. We advise investors to consult certified experts before making any investment decisions.
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