The Indian stock market indices Sensex and Nifty are expected to open lower on Monday tracking weak global cues.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading at around 20,190 level as compared to the Nifty futures’ Friday close of 20,240.
The domestic benchmark equity indices continued upside momentum and ended at their record closing high on Friday. The Sensex jumped 320 points to close at 67,839, while the Nifty ended 89 points higher at 20,192.
Nifty formed a small positive candle on the daily chart with minor upper shadow.
“This pattern indicates gradual upside momentum in Nifty with volatility in the last two sessions. Though, Nifty broke above the hurdle of 20K mark recently, the sharp upside momentum is missing post breakout at the new highs. Nifty on the weekly chart closed with a strong note. We observe a formation of long bull candle on the weekly chart, which is back to back for the second consecutive sessions,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
He believes the short term trend of Nifty continues to be positive, while there is a possibility of further upside with volatility in the coming sessions.
Also Read: 6 things that changed for market over weekend: Gift Nifty, Parliament session to global market cues for Sensex today
Here’s what to expect from Nifty and Bank Nifty today:
Nifty
The Nifty continued to exhibit strength as the index reached new highs.
“Strong Put writing at 20,100 has further bolstered positive sentiment in the market. The trend is expected to remain positive as long as the Nifty remains above the 20,000 mark. In the short term, there is potential for the Nifty to move towards the 20,480-20,500 range on the upside,” said Rupak De, Senior Technical analyst at LKP Securities.
Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — September 18
Bank Nifty
The Bank Nifty index rose 231 points to 46,232 on Friday and formed a bullish candlestick pattern with minor upper shadow on the daily timeframe. The sentiment remains positive as the Bank Nifty approaches its all-time high.
“The strong presence of Put writers at 46,000 has supported the index to stay in positive territory. The trend is anticipated to stay bullish as long as the Bank Nifty remains above the 46,000 mark. In the short term, there is potential for the Bank Nifty to reach levels around 46,700 and 47,000 on the upside,” De added.
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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 taking any investment decisions.
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