Nifty 50, Sensex today: What to expect from Indian stock market in trade on December 21
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 21,135 level as compared to the Nifty futures’ previous close of 21,169.
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The domestic indices witnessed a sharp sell-off on Wednesday with the Nifty 50 registering its biggest one-day fall in a year.
On December 20, the Sensex slumped 930.88 points to end at 70,506.31, while the Nifty 50 ended 302.95 points, or 1.41%, lower at 21,150.15.
Nifty 50 formed an engulfing pattern at the highs suggesting a possible downward reversal. The candle of December 20 engulfed the candles of the previous three sessions and filled the upgap formed on December 15.
“Zooming into the 15 min charts, we can observe that the Nifty has broken its previous support of 21,337 and there has also been a negative moving average crossover as the 20 period MA has moved below the 50 period MA. Momentum readings like the 14-day RSI too have declined sharply from overbought levels indicating a loss of momentum. This is a negative signal for the near term and it also implies that the Nifty has now entered into a short term downtrend,” said Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty Open Interest Data
Speaking on the Open Interest (OI) data, Deven Mehata, Research Analyst at Choice Broking said on the call side, the highest OI observed at 21,500 followed by 21,400 strike prices while on the put side, the highest OI is at 21,000 strike price.
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Nifty 50 Predictions
The Nifty 50 experienced a sharp correction on December 20 as bearish sentiment persisted.
“Nifty failed to sustain above 21,500, resulting in increased call writing at the 21,500 strike, subsequently leading to a significant downturn. At its lowest point, the Nifty dropped just below 21,100 before recovering to close above that level. Looking ahead, there might be a consolidation phase for the Nifty in the near term,” said Rupak De, Senior Technical Analyst at LKP Securities.
He expects resistance to be around 21,500, while support is anticipated at 21,100.
Also Read: Day trading guide for stock market today: Five stocks to buy or sell on Thursday — 21st December
Bank Nifty Predictions
The Bank Nifty index declined 426 points to close at 47,445 on Wednesday, forming a long bearish candlestick pattern on the daily timeframe.
“The Bank Nifty index experienced intense selling pressure, resulting in the formation of a bearish engulfing candle on the daily chart. The immediate resistance for the index is situated at the 47,600-47,700 zone, and a breakthrough above this level could pave the way for further upside, targeting 48,000,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
However, Shah believes the overall sentiment remains bearish, suggesting a cautious approach with a preference for selling on any upward movements.
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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Published: 21 Dec 2023, 07:47 AM IST
