Nifty 50, Sensex today: What to expect from Indian stock market in trade on April 16

The trends on Gift Nifty also indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 22,180 level, a discount of nearly 185 points from the Nifty futures’ previous close.

On Monday, the domestic equity indices ended over a percent lower each for the second consecutive session, with the Nifty 50 falling below the 22,300 level.

The Sensex plunged 845.12 points to close at 73,399.78, while the Nifty 50 settled 246.90 points, or 1.1%, lower at 22,272.50.

Nifty 50 formed a reasonable negative candle on the daily chart with a gap-down opening.

Also Read: Indian stock market: 8 key things that changed for market overnight – Gift Nifty, US tech stocks selloff to bond yields

“Technically, this pattern indicates a short-term top reversal and signals more weakness in the near term. The larger degree positive chart pattern like higher tops and bottoms is intact on the weekly chart and present weakness could be in line with the formation of a new higher bottom of the pattern. Still there is no confirmation of any higher bottom reversal yet at the lows,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

According to Shetti, Nifty is currently nearing weekly 10-period EMA (Exponential Moving Average) around 22,200 levels and the said moving average has offered support for the market in the last few months. He believes the short-term trend of Nifty continues to be weak. 

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

Nifty 50 Prediction

The Nifty 50 index witnessed a sharp follow-through decline on April 15 and closed the day lower by 246 points.

“The Nifty recently dipped below a crucial moving average, following a breakdown in consolidation. Additionally, the Relative Strength Index (RSI) indicates a bearish crossover. Short-term sentiment appears bearish, although a significant decline isn’t anticipated at present. Instead, the index is likely to fluctuate between 22,200 and 22,400,” said Rupak De, Senior Technical Analyst, LKP Securities.

He believes the sellers are expected to persist as long as the index remains below the 22,400 mark.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — April 16

Bank Nifty Prediction

The Bank Nifty index plunged 791 points, or 1.6%, to close at 47,773 on Monday, forming a bearish candlestick pattern on the daily charts.

“The Bank Nifty index has continued to face strong bearish pressure, with visible selling during intraday bounces. The index is poised to test its support at 47,500, which aligns with the 20-day moving average (20 DMA). Failure to hold above this level could lead to further declines. Immediate resistance is established in the 48,500 to 48,600 zone,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

A decisive break above this resistance is necessary to resume the upward movement towards the 50,000 mark, Shah added.

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.

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Published: 16 Apr 2024, 07:26 AM IST