Nifty 50, Sensex today: What to expect from Indian stock market trading on November 21 after Maharashtra elections 2024

Indian stock indices Sensex and Nifty 50 are likely to open on a cautious note on Thursday following weakness in global markets.

Gift Nifty trends point to a moderately positive start for the Indian benchmark index. Gift Nifty was trading around the 23,560 level, representing a premium of nearly 25 points to the previous close of Nifty futures.

The Indian stock market was closed on Wednesday, November 20, due to the 2024 Maharashtra elections.

On Tuesday, the country’s main stock indices broke a seven-day losing streak and ended higher.

The Sensex gained 239.37 points, or 0.31 per cent, to close at 77,578.38, while the Nifty 50 rose 64.70 points, or 0.28 per cent, at 23,518.50.

Nifty 50 formed a small negative candle with a long upper shadow and negligible lower shadow, indicating a lack of strength in the market to sustain the bounce.

“Technically, there was only some change in price action at the close, but the midweek pre-holiday selloff confirms a cautious stance in markets. The market appears volatile and it is advisable to avoid aggressive directional trading in key indices,” said Osho Krishnan, senior technical and derivatives analyst at Angel One.

He noted that at the same time, the technical situation reflects a bearish sentiment, which requires restraint from temporary pullbacks until there are signs of sustainable movement in domestic markets.

At the same time, it’s smart to stay updated on global developments, Krishnan said.

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

Nifty 50 Forecast

On November 19, Nifty 50 gained 65 points and formed a bearish Marubozu candlestick pattern, closing well below its 200-day moving average (DMA).

“The Nifty 50 Index remained volatile throughout the session due to the sudden spike in geopolitical tensions between Russia and Ukraine, resulting in the index falling below the 200-DMA again. On the technical front, Nifty managed to hold above its recent low, indicating a potential bullish reversal until it breaches the 23,350 level. Conversely, if the index maintains above the 23,500 level, it could move into the 23,700-23,800 zone,” said Rupak De, senior technical analyst at LKP Securities.

VLA Ambala, co-founder of Stock Market Today, advises market participants to approach the sell-on-the-high strategy from a trading perspective and for short-term investors to hedge their portfolios to reduce potential risk.

“On the technical charts, Nifty has formed a bullish belt hold candlestick pattern on the daily timeframe. This formation was supported by the 200-day EMA and an RSI reading of 36, indicating a potential bullish swing. However, there may be more sales in the coming months,” Ambala said.

After analyzing the market movements, Ambala expects Nifty support to be around 23,420 and 23,300 and resistance at 23,750 or 23,880.

Nifty Bank Forecast

The Bank Nifty index rose 262.70 points or 0.52 per cent to close at 50,626.50 on Tuesday, forming a Doji-like candlestick pattern.

“Bank Nifty almost reached the 51,000 zone but could not hold on longer, booking profits and ending the session near the 50,600 level with the bias shifting to cautious mode. The index will have a crucial support zone near the important 200-period MA at 49,800, below which the overall trend will turn bearish,” said Vaishali Parekh, vice president, technical research, Prabhudas Lilladher.

The Bank Nifty index is likely to move into the 50,000 to 51,000 range today, she added.

According to VLA Ambala, Bank Nifty may find support at 50,250 and 50,000 levels and face resistance at 50,650 and 50,800 levels.

Disclaimer: The opinions and recommendations expressed above are those of the individual analysts or brokerage firms and not of Mint. We advise investors to consult with certified experts before making any investment decisions.