Sun. Dec 10th, 2023
    A Look at the Indian Benchmark Index and Market Trends

    The Indian benchmark index, Gift Nifty, got off to a positive start, indicating favorable trends in the domestic equity market. With the Gift Nifty trading around the 19,800 level, there is optimism among investors. However, the market experienced a slight downturn in Monday’s session, with the Sensex falling 139.58 points to close at 65,655.15, and the Nifty 50 ending 37.80 points, or 0.19%, lower at 19,694.00.

    Analyzing the Nifty 50, we observe a small negative candle on the daily chart, suggesting a range-bound action in the market with a weak bias. Nagaraj Shetti, a Technical Research Analyst at HDFC Securities, notes that there is a minor degree of higher tops and bottoms in the Nifty. He believes that the recent swing high of 19,875 could be viewed as a new higher top in the sequence, and any subsequent dips are expected to form higher bottoms.

    Despite the short-term range-bound trend, there is a possibility of consolidation or minor weakness before an upside bounce from the lows. As we move forward, it will be crucial to keep an eye on Nifty 50 and Bank Nifty to gauge the market’s direction.


    Q: How did the domestic equity market perform?

    A: The Sensex fell 139.58 points to close at 65,655.15, and the Nifty 50 ended 37.80 points, or 0.19%, lower at 19,694.00.

    Q: What is the outlook for the Nifty 50?

    A: The Nifty index is currently trading within a broad consolidation phase, with support observed at 19,650 and resistance at 19,800. A breakout from this range with significant volumes on either side will determine the next trending move.

    Q: What can we expect from the Bank Nifty?

    A: The Bank Nifty ended flat at 43,585 and formed a doji candle on the daily chart, indicating indecisiveness. The index faces significant resistance at 44,000, and a breakthrough above this level could trigger short-covering moves. On the other hand, lower-end support is at 43,300, and breaching this level may lead to further downside movement towards 42,800.