Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 27 | Stock Market News

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Monday, tracking weakness in global markets.

The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around 22,932 level, a discount of nearly 180 points from the Nifty futures’ previous close.

On Friday, the domestic equity market indices ended lower amid profit booking, with the benchmark Nifty 50 slipping below 23,100 level.

The Sensex declined 329.92 points, or 0.43%, to close at 76,190.46, while the Nifty 50 settled 113.15 points, or 0.49%, lower at 23,092.20.

Nifty 50 formed a small negative candle on the daily chart with a long upper shadow.

“Technically this market action signals rejection of bulls at the lower highs. The bearish pattern like lower tops and bottoms continued on the daily chart and Friday’s high of 23,347 could now be considered as a new lower top of the pattern. After the formation of a doji pattern in the previous week, the market was not able to show any significant upside bounce last week and closed lower by 0.5%. Hence, the bullish implication raised after the doji could be nullified,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the near-term trend of Nifty 50 remains weak and a slide below the immediate support of 22,975 levels could open the next downside towards 22,800 levels.

Any upside bounce towards 23,350 – 23,400 could be a sell on rise opportunity, he added.

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

Sensex Prediction

In the last week, the benchmark indices continued to experience selling pressure at higher levels. The Sensex was down by 405 points.

“Technically, the market is consistently facing selling pressure at higher levels and is holding a lower top formation on daily charts, which is largely negative. We believe that the current market texture is weak, but due to temporary oversold conditions, we could see range-bound activity in the near future,” said Amol Athawale, VP-Technical Research, Kotak Securities.

For the bulls, the Sensex levels of 77,000 and 77,300 will act as key resistance areas, while 75,700 and 75,500 could serve as key support zones for traders. If the market surpasses 77,300, it could rally till 77,800 – 78,000. Conversely, if it falls below 75,500 selling pressure may intensify, potentially slipping till 75,200 – 74,700, Athawale added.

Nifty 50 Prediction

Nifty 50 continued with the downside momentum continued on January 24 after a small upside bounce of two sessions and closed the day lower by 113 points.

“Nifty 50 remained volatile with a predominantly bearish bias. Sentiment continues to favor the bears as the index once again retreated from the day’s high. In the short term, the bears may maintain the upper hand as long as the Nifty 50 index fails to surpass the 23,450 level. Any rise toward the 23,350 – 23,450 zone is likely to encounter selling pressure. However, the downside may remain limited unless the 23,000 level is breached,” said Rupak De, Senior Technical Analyst at LKP Securities.

VLA Ambala, Co-Founder of Stock Market Today, highlighted that on the weekly price charts, Nifty’s movement formed a high-wave candlestick pattern, mimicking investors’ indecisiveness.

“The benchmark index is currently at its 50-week EMA (Exponential Moving Average) and almost 3% below its 20-month EMA. However, this gap is likely to be filled soon as the Nifty’s monthly RSI suggests it’s still at its moderate level. Considering this situation, Nifty could gather support between 23,130 and 23,200 and face resistance between 23,940 and 23,870 in today’s market session,” Ambala said.

Dr. Praveen Dwarakanath, Vice President of Hedged.in, said that the Nifty 50 formed an inverted red hammer candle, indicating weakness in the index to continue.

“Nifty 50 index sold off during the day after a bounce from its immediate support at the 23,000 level. The momentum indicators are well below the oversold region, which can be a possible reason for the bounce, however, one can sell the index on every rise, until the resistance at the 23,800 level is not taken off,” said Dwarakanath.

Options writer’s data for the January monthly expiry showed increased writing of the calls at the 23,100 and above levels, indicating a bearishness in the index, he added.

Bank Nifty Prediction

Bank Nifty dropped 221.20 points, or 0.46%, to close at 48,367.80 on Friday, forming a high wave doji candlestick pattern, reflecting cautious sentiments.

“Bank Nifty formed a red doji candle with the upper shadow bigger than the lower one, indicating selling pressure in the index. The immediate resistance for the index is at the 49,500 level, until which, one can sell the index on every rise. The momentum indicators are in the oversold region, which can be a reason for a small bounce, however, it would be an opportunity for fresh selling at higher levels,” said Dwarakanath.

Options writer’s data for the monthly expiry showed increased writing of the calls at the 48,400 and above levels, suggesting a weakness in the index, he added.

Amol Athawale said that for Bank Nifty, as long as it is trading below 49,000, weak sentiment is likely to continue and on the downside, it could fall to 47,500 – 47,200.

“Conversely, if it rises above 49,000, it could bounce back to the 20-day Simple Moving Average (SMA) or 49,500. Further upside may also continue, which could lift the index up to 50,000,” Athawale said.

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.