Nifty 50, Sensex today: What to expect from Indian stock market in trade on June 20
Nifty 50 formed a reasonable negative candle on the daily chart at the new highs with lower shadow.
The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note amid mixed global market cues.
The trends on Gift Nifty also indicate a flattish start for the Indian benchmark index. The Gift Nifty was trading around 23,525 level, a premium of nearly 25 points from the Nifty futures’ previous close.
On Wednesday, the domestic equity benchmark indices ended with the Nifty 50 ending its five-day winning streak.
The Sensex gained 36.45 points to close at 77,337.59, while the Nifty 50 settled 41.90 points, or 0.18%, lower at 23,516.00.
Nifty 50 formed a reasonable negative candle on the daily chart at the new highs with lower shadow.
“Technically, this pattern indicates a formation of a bearish engulfing pattern, but not a classical one. The present market action signals tiredness of bulls at the highs. Such formation during range bound action doesn’t signify any crucial reversal pattern,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Though, Nifty placed at the highs, still there is no confirmation of any significant reversal pattern building at the highs. Further weakness only below 23,300 levels could be considered as a short-term top reversal pattern. Further sustainable upside bounce is likely to negate this negative setup, he added.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Prediction
Nifty 50 slipped into weakness amidst volatility on June 19 and closed the day lower by 41 points. The index registered a new high at 23,664 but failed to sustain at that level.
“Sentiment continues to favor short-term bullish trades as the index sustained above the 55 exponential moving average (EMA) on the hourly chart. The short-term trend remains strong, and any dips towards the 55-hour EMA, which is currently pegged at 23,340, might get bought into,” said Rupak De, Senior Technical Analyst, LKP Securities.
On the higher end, he believes the index might move towards 23,800 and beyond in the short term.
Rahul Ghose, CEO of Hedged.in noted that Nifty spot struggle to hold above the day’s opening range, which is trading in the range of 23,554 to 23,630, indicates that bulls are lethargic at higher levels.
“The increased writing of the put open interest (OI) at 23,500 [which is also the max pain] and below levels, indicates support for Nifty for current weekly expiry. The PCR dropped to 0.77 in the first half of the session and jumped to 1.17 levels, indicating the upside space is very limited for the bulls to play around in the June series,” Ghose said.
Bank Nifty Prediction
Bank Nifty index jumped 957 points, or nearly 2%, to close at 51,398 on Wednesday, outperforming the Nifty 50, and formed a long bullish candlestick pattern with a long upper shadow on the daily timeframe.
“The Bank Nifty index continued its strong momentum post-breakout and approached the mark of 52,000. The strong momentum is likely to continue, with immediate support at the 51,000 - 50,900 zone,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
According to Shah, the index remains in a buy mode, and dips should be bought aggressively for targets of 52,100 - 52,600.
Bank Nifty spot also traded above the day’s opening range, which is trading in the range 50,441 to 50,897, indicating the bulls are in the driving seat, according to Ghose.
“The increased writing of the put OI at 51,300 and below levels, indicates strong support for Bank Nifty for weekly expiry. The Bank Nifty PCR jumped to 1.48 levels, indicating the index is trading in the overbought levels. Bank Nifty spot tested new ATH 51,955, where the reaction on downside can’t be ruled out,” Ghose said.
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