In response to mixed global indications, the Sensex and Nifty 50 indexes of the Indian stock market are anticipated to open higher on Monday, mirroring advances in their Asian counterparts.
The Indian benchmark index is out to a strong start, according to Gift Nifty's trends. The Gift Nifty was trading at a premium of around 110 points over the previous closing of the Nifty futures, at 22,240.
Friday saw a significant increase in the local market indexes, with the benchmark Nifty 50 closing over the 22,100 mark. The Nifty 50 closed 151.15 points, or 0.69%, higher at 22,147.00, while the Sensex gained 599.34 points, or 0.83%, to end at 73,088.33. Nifty 50 opened near the lows and created a lengthy bull candle on the daily chart.
The current chart pattern suggests a bullish piercing line-type candle pattern, which denotes a near-term market bottom reversal. Near the last swing bottom on March 20th, at 21,750 levels, Nifty managed to hold above the support. This structure may be classified as double bottom. The Nifty recovered the lost territory and ended above the lower channel support on Friday, according to HDFC Securities Senior Technical Research Analyst Nagaraj Shetti. The Nifty had broken below the lower channel support at 22,000 levels.
He reckons that the Nifty's short-term trend appears to have turned upward after creating a bullish candle pattern reversal-type on Friday.In the next sessions, more upside might be anticipated approaching the next resistance level, which is about 22,500 levels.
What to anticipate from Bank Nifty and Nifty 50 today is as follows:
In the face of intense volatility, the Nifty 50 index saw a fantastic upward comeback from the sharp dip on April 19 and ended the day with respectable gains of 151 points.
A piercing line pattern has developed on the daily chart, which frequently signals a bullish reversal after a downturn. Furthermore, the indicator has outperformed the short-term moving average, the 55-EMA (Exponential Moving Average). An uptrend in the near term is indicated by a closure above this moving average. Bulls might propel the Nifty's rise to 22,300 in the future, according to Rupak De, Senior Technical Analyst at LKP Securities.
Moreover, he thinks a strong move over 22,300 may set off a long-term upswing toward 22,600. On the negative side, closing basis support is located at 22,000.
Forecast for the Bank Nifty
On Friday, the Bank Nifty index ended the day 505 points higher at 47,574.
"From the 46,500 support level, the Bank Nifty Index developed a bullish piercing candlestick pattern, demonstrating strong bullish momentum. The index's immediate resistance is above 48,000, where a sizable accumulation of open interest on the call side suggests a possible obstacle. The index has found instant support between the range of 47,200 and 47,000, according to Kunal Shah, a LKP Securities senior technical and derivative analyst.
Shah stated, "If these levels hold, any pullbacks towards this support zone are seen as buying opportunities, suggesting continued bullish sentiment."
