Indian Stock Market Outlook for January 8: As the new week kicks off, the Indian stock market indices, namely Sensex and Nifty 50, are poised for a muted opening on Monday, influenced by mixed global cues.
Projections for the Gift Nifty also suggest a lackluster start for the Indian benchmark index, hovering around the 21,765 level, slightly below the Nifty futures’ prior close of 21,785.
In the previous trading session on Friday, the domestic benchmark equity indices exhibited gains for the second consecutive session, with the Nifty 50 maintaining its position above the 21,700 level. The Sensex concluded 178.58 points higher at 72,026.15, while the Nifty 50 settled at 21,710.80, registering an increase of 52.20 points, or 0.24%.
Analyzing the market trends, Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted the formation of an identical open and close pattern on Friday, resembling a doji pattern at the highs (albeit not a classical one). Shetti suggested cautious optimism for long positions in the face of such doji formations at the highs. While the short-term uptrend status of Nifty remains intact, resistance is anticipated around 21,800-21,850 levels in the coming sessions.
Shetti posited that a decisive move beyond 21,850-21,900 levels would be necessary to unlock the next upside target of 22,200 levels.
Nifty 50 and Bank Nifty Expectations for Today:
Nifty 50 Predictions:
- Anticipates volatility with a likelihood of consolidation shortly.
- Following a swift rebound from the support at 21,500, bullish activity has resumed, evidenced by buying interest during dips.
- Current sentiment is bullish, but the index faces initial resistance at 21,750, encountering selling pressure.
- Immediate support is situated at 21,600.
- A conclusive close above 21,750 levels could propel the Nifty 50 towards the 22,000 mark, signaling further upward movement.
Bank Nifty Predictions:
- Ended a volatile session 37 points lower at 48,159 on January 5.
- Demonstrates a robust recovery from the 47,500 support level, displaying active bullish activity rebounding from the 14-day moving average support at 47,800.
- A closing above 48,200 is deemed crucial, potentially propelling the index towards 48,500 and 48,800 levels.
- Immediate support for Bank Nifty stands at 47,800, highlighting a key level in the current market scenario.
Disclaimer: The perspectives and recommendations provided are individual analysts’ or broking companies’ views and not those of Mint. Investors are advised to consult certified experts before making any investment decisions.