Sensex and Nifty may extend their rally on Friday as market analysts predict positive trends. Experts say the Nifty could reach 23,200 levels soon. Nagaraj Shetti of HDFC Securities noted a new higher bottom around 22,400. Meanwhile, India VIX fell 7 per cent to 15.12, which supported the bullish move.
Sensex, Nifty outlook for Friday: Market experts believe the Nifty can potentially rally to 23,200 levels in the near-term.
Sensex, Nifty outlook: Here's what market analysts predict.
After a series of bearish patterns like lower tops and bottoms, the recent market action signals confirmation of a new higher bottom around 22,400 levels on the Nifty, highlights Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. Shetti reckons that this could possibly open bullish chart formations like higher highs and lows ahead. The analyst believes that the short-term trend of Nifty remains positive, and the index may advance towards the next resistance of 23,200 in the short term.
Ajit Mishra, SVP - research at Religare Broking flags that technically the Nifty's move above the 20-day exponential moving average (DEMA) around 22,825 offers near-term relief and improves the prospects of an advance towards the 23,100-23,300 zone. On the downside, Mishra sees the 22,500-22,700 zones as the immediate support, while the broader 22,200-22,400 band is expected to remain an important downside reference. Additionally, Om Mehra, Technical Research Analyst at SAMCO Securities notes that the Relative Strength Index (RSI) is now holding above the 50-mark for Nifty. Further, India VIX dropped 7 per cent to 15.12, slipping below 16, thus supporting the bullish move and the advance-decline ratio also improved. Mehra says that the Nifty now holds comfortably above the 20-day simple moving average (DSMA), placed around 22,700. He believes that a double bottom formation is slowly taking shape. On the upside, the index may test its next hurdle around 23,220, where the 50-DSMA is positioned, he adds. On similar lines, Sachin Gupta, VP-Technical Research at Choice Equity Broking believes that the outlook on Sensex has improved to sideways to bullish, supported by strong buying, a bullish daily candle and improving RSI momentum on Thursday. Gupta says that holding above 73,200-73,500 will be crucial for sustaining the recovery, while a move beyond 74,400-74,700 could trigger further upside. "The broader trading range stands at 73,200-74,700, with the bias shifting towards sideways to bullish. Sustaining the recovery and moving beyond the resistance zone could open the door for further gains, while holding above the support area will be important to maintain the positive momentum," explains the analyst. Meanwhile, Ponmudi R, CEO of Enrich Money cautions that the extent and sustainability of the market recovery would depend on other external factors play out. "The sustainability of the recovery will depend on whether buying interest broadens and persists across sectors, and whether crude oil prices ease further. External macroeconomic uncertainties and geopolitical risks remain key factors that could influence the market's direction," cautions Ponmudi R, CEO of Enrich Money.
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