Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 7 | Stock Market News

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Tuesday following gains in global markets.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 23,780 level, a premium of nearly 60 points from the Nifty futures’ previous close.

On Monday, the domestic equity market crashed, with the benchmark Nifty 50 slipping below 23,700 level.

The Sensex slumped 1,258.12 points, or 1.59%, to close at 77,964.99, while the Nifty 50 settled 388.70 points, or 1.62%, lower at 23,616.05.

Nifty 50 formed a long bear candle that has negated the bullish sentiment created in the last week.

“The candle pattern of Monday is indicating a bull trap of recent upside breakout and this signals more weakness in the short term. The recent upside breakout of range has been negated and the Nifty 50 slipped below the crucial 200-day EMA (Exponential Moving Average) again at 23,700 levels for the third time. Hence, the next support of 23,500 – 23,400 levels could be in danger of violation,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the short-term trend of Nifty 50 is weak and one may expect some more weakness in the coming sessions. The next lower supports are seen in the vicinity of 23,460 and 23,260 levels. Any upside bounce could find hurdle around 23,800, he added.

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

Nifty 50 Prediction

Nifty 50 witnessed a steep decline on January 6 and closed the day lower by 388 points.

“Technical indicators presented a mixed outlook for the market. The Relative Strength Index (RSI) currently stands at 40.7, trending downward, indicating bearish momentum. In contrast, the Stochastic RSI showed a bullish crossover, hinting at a potential short-term recovery. This divergence in indicators suggests caution, as the market lacks a clear directional bias,” said Mandar Bhojane, Research Analyst at Choice Broking.

He advises investors to monitor price action closely near critical support and resistance levels. The interplay between these technical indicators and market trends will determine whether the Nifty 50 stabilizes or faces further downside pressure in the coming sessions, he added.

VLA Ambala, Co-Founder of Stock Market Today, expects Nifty 50 to hover for support near 23,470 and 23,200 and notice resistance near 23,650 and 23,720 and the broader sentiment is likely to remain bearish.

Bank Nifty Prediction

Bank Nifty index slumped 1,066.80 points, or 2.09%, to close at 49,922.00 on Monday.

“Bank Nifty witnessed heavy profit booking as the day progressed and has breached below the significant support zone of the 200 period MA at 50,700 levels after a very long time, weakening the overall bias and has arrived near the critical support zone of 49,700 levels where previously, on thrice occasion it had indicated a positive reversal from this zone,” said Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher.

According to her, a decisive breach below the 50,700 zone shall invite intensified selling pressure, with the overall trend turning bearish with the 48,500 level as the next necessary support.

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.