Nifty 50, Sensex today: What to expect from Indian stock market in trade on June 18

Nifty 50 formed a long legged doji on daily charts suggesting possibility of a reversal.

Indian stock market indices, Sensex and Nifty 50, are likely to open higher on Tuesday following gains in global markets.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 23,590 level, a premium of nearly 130 points from the Nifty futures’ Friday’s close.

On Friday, the domestic equity benchmark indices ended higher with the Nifty 50 settling at fresh closing high.

The Sensex rose 181.87 points to close at 76,992.77, while the Nifty 50 settled 66.70 points, or 0.29%, higher at 23,465.60.

Indian stock market was closed on Monday, June 17, for Eid ul-Adha 2024.

Nifty 50 formed a long legged doji on daily charts suggesting possibility of a reversal.

“An identical open and close were registered on Friday at 23,465 levels with the formation of a long lower shadow on the daily chart. This is indicating a formation of long legged doji type candle pattern at the new all-time highs. Normally, such doji formations after a reasonable up move signals caution for impending trend reversal. But, having formed this pattern amidst range movement the chances of significant reversal pattern forming could be less,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

Nifty continued to show range bound action within 23,300 - 23,500 levels and still there is no early signs of any breakouts on either side.

According to Shetti, a decisive move above 23,500 levels is likely to open an upside breakout and a slide below 23,300 levels could mean a chance of downside breakout of the range movement in the near term.

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

Nifty 50 Prediction

Nifty 50 continued to move into a narrow range movement with positive bias on Friday and the market closed the day higher by 66 points.

“Nifty remained within the defined range of 23,300-23,500. The short-term sentiment is likely to remain more or less positive. Support levels are seen at 23,400/23,300, where put writers have built significant positions. A decisive fall below these levels might shift the market balance in favor of the bears. Until then, it’s a buy-on-dips market,” said Rupak De, Senior Technical Analyst, LKP Securities.

On the higher end, he believes a decisive move above 23,500 might lead to a sharp upside in the near term.

V.L.A. Ambala, Co-founder - Stock Market Today (SMT) noted that Nifty was consolidating within a small range during last week’s session, forming a positive candlestick pattern on the weekly timeframe and a ‘Hanging Man’ candlestick pattern during the day’s session.

“Overall, the major market trend hints at bullish outlooks, especially at the current price level of 23,465. Hereon, any dip between 5-12% should be taken as a buying opportunity. Individuals are advised to adopt a thematic approach and seek fundamentally strong high-growth stocks from certain sectors. For instance, sectors such as logistics, green energy, advanced technology, defense, metal, infrastructure, and consumables should be on one’s watchlist,” said Ambala.

Judging by the current momentum, she believes the Nifty is likely to take support between 23,320 and 23,220, and face resistance between 23,520 and 23,605 levels in the upcoming session.

Bank Nifty Prediction

The Bank Nifty index gained 155 points to close at 50,002, where the highest open interest is built up on the call side.

“The Bank Nifty index needs to decisively surpass the 50,200 mark to confirm an upside breakout towards the 51,000 level. The lower-end support is placed at the 49,500 - 49,400 zone, and a break below this will open gates for further downside towards 49,000,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

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.