Nifty 50, Sensex today: What to expect from Indian stock market in trade on March 20

The trends on Gift Nifty also indicate a green start for the Indian benchmark index. The Gift Nifty was trading around 21,910 level, a discount of over 20 points from the Nifty futures’ previous close.

The domestic equity indices ended over a percent lower on March 19 with the Nifty 50 index falling to its lowest level in over a month. 

The Sensex cracked 736.37 points to end at 72,012.05, while the Nifty 50 settled 238.25 points, or 1.08%, lower at 21,817.45.

Nifty formed a long bear candle on the daily chart after a narrow range bound movement. The immediate support of 21,900 – 21850 has broken on the downside and Nifty closed lower.

“Having moved below the recent higher bottom of 21,860 of 29 February, the Nifty seems to have negated its bullish pattern like higher tops and bottoms and this could eventually resume a bearish pattern like lower tops and bottoms, as per the daily timeframe chart. The overall chart pattern of Nifty is weak and one may expect a further decline in the near term,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

According to Shetti, the next lower levels to be watched are around 21,500 in the next one week and any rise up to 22,000 could be a sell-on-rise opportunity.

Also Read: Indian stock market: 7 key things that changed for market overnight – Gift Nifty, China’s loan prime rates to oil prices

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

Nifty OI Data

The Nifty Open Interest (OI) data revealed the highest OI on the call side at the 22,000 strike price, followed by the 22,200 strike price. On the put side, the highest OI was observed at the 21,500 strike price, said Mandar Bhojane, Research Analyst at Choice Broking.

Nifty 50 Prediction

The Nifty 50 index plunged 238 points and slipped below the 22,000 level on March 19.

“The Nifty has broken down from the rising wedge pattern on the daily chart, suggesting a potential reversal of the uptrend. Additionally, it has fallen below the critical short-term moving average, indicating weakening momentum. The Relative Strength Index (RSI) has also shown a bearish crossover, indicating increasing selling pressure,” said Rupak De, Senior Technical Analyst, LKP Securities.

Key levels to watch include resistance at 22,000 and support at 21,800. A drop below 21,700 could lead to further correction in the Nifty index, he added.

Rahul Ghose, CEO, Hedged.in notes that the short put writers at the 22,000 level have gotten stuck with yesterday’s fall and have converted their short put positions into short straddles of 22,000. 

“This has given the naked sellers a cushion till the 21,700 levels, below which you will see another free fall in the index of 200 more points. On the upside, unless we see two bullish candles above the 22,000 level, no longs should be initiated,” Ghose said.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — March 20

Bank Nifty Prediction

The Bank Nifty index declined 191 points to close at 46,385 on Tuesday, extending a fall for the eighth consecutive session.

“The Bank Nifty experienced another day of sideways trading, indicating ongoing indecision between bulls and bears, marked by the formation of a doji candle. Key levels to watch include support at 46,000 and resistance at 47,000, where the highest put and call open interests are concentrated. A breakout beyond this range is awaited for a directional move; however, within the range, the bullish sentiment prevails,” De said.

He recommends traders consider adopting a buy-on-dip strategy, with 46,000 as a stop-loss level.

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.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!

Published: 20 Mar 2024, 07:36 AM IST