Nifty 50, Sensex today: What to expect from Indian stock market in trade on February 29

The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 21,960 level, up more than 30 points from Nifty Futures’ previous close.

On Wednesday, the domestic benchmark indices ended more than a percent lower, with the Nifty 50 falling below 22,000 level ahead of the monthly expiry.

The Sensex plunged 790.34 points to close at 72,304.88, while the Nifty 50 slipped 247.20 points, or 1.11%, and ended at 21,951.15.

Nifty 50 formed a long negative candle on the daily chart that has engulfed the last two sessions’ bull and bear candles. 

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“Technically, this formation signals trend reversal on the downside and one may expect further weakness in the short term. Positive chart pattern like higher tops and bottoms is intact and present weakness could be in line with the new higher bottom of the pattern. The next crucial lower levels to be watched are around 21,800 and 21,700 levels (ascending trend line and 10-week EMA),” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

Nifty 50 has bounced up from near these levels in the past, but Shetti believes a slide below 21,700 could open a sharp fall in the near term.

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

Nifty OI Data

A scrutiny of Open Interest (OI) data revealed that the call side displayed the highest OI at 22,000, followed by the 22,300 strike prices. On the put side, the maximum OI was observed at the 21,800 strike price, said Mandar Bhojane, Research Analyst at Choice Broking.

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Nifty 50 Prediction

The Nifty 50 index witnessed a steep correction amid heavy selling pressure on February 28, breaching the 22,000 mark and ending well below it with a loss of over a percent,.

“The Nifty index dropped below the 22,000 mark, indicating a growing weakness. Nevertheless, it managed to close just above the 21-EMA (Exponential Moving Average) on the daily timeframe. Observing the daily chart, the index has been navigating within a rising channel. A decline below 21,950 could potentially trigger a correction towards 21,800 in the near term,” said Rupak De, Senior Technical Analyst, LKP Securities.

Conversely, he believes a sustained trade above 21,950 might spur a recovery in the index towards 22,100.

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Bank Nifty Prediction

The Bank Nifty index dropped 1.34%, or 625 points, to close at 45,963 on Wednesday.

“Bears pulled Bank Nifty below 46,000 as the bulls were unable to shield the index from dropping below 46,500. Wednesday’s selling pressure has pushed the index below the crucial short-term moving average as well. The sentiment appears negative, with the index potentially moving towards 45,700 / 45,300 in the near term,” De said.

According to him, resistance for Bank Nifty is positioned at 46,100.

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 taking any investment decisions.

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Published: 29 Feb 2024, 07:27 AM IST