Nifty 50 and Sensex Outlook: Predictions for the Indian Stock Market on January 1

The Indian equity market, represented by the Sensex and Nifty 50, is anticipated to commence the week on a subdued note, potentially consolidating following a pronounced upswing.

Similarly, indications from the Gift Nifty suggest a tepid start for the primary benchmark index. The Gift Nifty hovered near the 21,807 mark, a slight dip from the Nifty futures’ close at 21,861. On the previous trading day, both the Sensex and Nifty 50 retreated, halting a five-day winning streak amid profit-taking activities.

On December 29, the Sensex concluded at 72,240.26, down by 170.12 points, while the Nifty 50 settled at 21,731.40, marking a decrease of 47.30 points or 0.22%.

The daily chart for the Nifty 50 displayed a modest negative candle with marginal shadows on both ends. From a technical standpoint, this suggests the emergence of a high wave or doji candle pattern. Typically, following a notable ascent, such patterns hint at potential trend shifts. However, given its juxtaposition with Thursday’s bullish candle, the market could witness a phase of consolidation or sideways movement. The weekly chart highlights a robust bullish candle that surpasses the prior week’s high wave candle, signaling optimistic prospects,” elaborated Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

Shetti maintains that the immediate bullish trajectory for the Nifty 50 remains unaltered. Nonetheless, a short-term phase of consolidation or range-bound activity might ensue over the next couple of sessions before the uptrend resumes. During the previous session, the Nifty 50 oscillated within a band of 21,650-21,750.

Rupak De, Senior Technical Analyst at LKP Securities, noted, “The formation of a doji candle on the daily chart points to market indecision. This sentiment necessitates validation via a clear breakout above 21,750 or a breach below 21,650. A downside breach of 21,650 could potentially steer the Nifty towards the 21,500 mark.”

Conversely, De posits that sustained trading above 21,750 could propel the index toward the 22,000 milestone.

Source-https://www.livemint.com/market/stock-market-news/nifty-50-sensex-today-what-to-expect-from-indian-stock-market-in-trade-on-january-1-11704075772133.html