Nifty likely to inch up towards 21,800-21,850 area
The Nifty50 is expected to continue its upward movement and may reach the 21,800-21,850 area in the coming sessions. After a strong rebound in the previous two sessions, the bulls seem to be in a healthy position. The index held on to the support level of 21,500 and if it surpasses this hurdle, it could reach the psychological level of 22,000, according to experts.
Bullish Inside Day-type candle pattern signals more upside for Nifty
On January 4, the Nifty50 formed a small bullish candlestick pattern on the daily chart. This pattern, known as a Bullish Inside Day, indicates that more upside movement is likely in the next session. This positive pattern confirms the reversal of the short-term trend for the Nifty, which had shown minor weakness in the previous two sessions. The index is expected to sustain above the support levels of 21,550-21,600 and move towards the upside targets of 21,850-21,900 in the near term.
Nifty midcap and smallcap indices outperform benchmarks
The Nifty Midcap 100 and Smallcap 100 indices performed better than the benchmarks after a consolidation phase. They rose by 1.7% and 1% respectively, indicating positive breadth in the market. The declining volatility, as shown by the India VIX fear index falling by 5.44% to 13.33 levels, also supported the bullish sentiment.
Bank Nifty bounces back above 48,000 mark, expects further rally
The Bank Nifty snapped four days of losses and bounced back above the 48,000 mark on January 4. The index formed a long bullish candlestick pattern on the daily chart. It held on to the support of the 20-day moving average and started the next leg of an upward move. As long as the Bank Nifty remains above the 48,000 level, the rally is expected to continue. The next upside target is set at 49,500 from a short-term perspective.
Call and Put options data suggest positive sentiment for Nifty
The Call options data for the Nifty shows that the 21,900 strike has the maximum open interest, followed by the 21,700 and 21,800 strikes. There was meaningful Call writing at the 21,900 strike. On the Put side, the 21,600 strike has the maximum open interest and saw meaningful Put writing. This data indicates a positive sentiment for the Nifty and suggests that the index may continue to move upwards.
Overall, the technical indicators and the options data point towards a positive trajectory for the Nifty. The index is expected to inch up towards the 21,800-21,850 area in the near term. The support levels to watch out for are 21,550-21,600. Traders and investors should monitor the market closely and consult with certified experts before making any investment decisions.
Analyst comment
Positive news: The Nifty50 is expected to continue its upward movement and may reach the 21,800-21,850 area in the coming sessions. Bulls are in a healthy position, the index held support level and could reach the psychological level of 22,000.
As an analyst, it is predicted that the market will continue its upward trajectory with the Nifty likely to inch up towards the 21,800-21,850 area. Traders and investors should monitor the market closely and consult with certified experts before making any investment decisions.
