The Indian stock market indices, Sensex and Nifty 50 are likely to see a positive opening on Tuesday led by positive global market cues.

he trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 21,779 level as compared to the Nifty futures’ previous close of 21,620.

On January 20, the domestic equity markets ended the special trading session of Saturday lower with the benchmark Nifty 50 index shifting into a consolidation.

The Sensex declined 259.58 points to end at 71,423.65, while the Nifty 50 closed 50.60 points, or 0.23%, lower at 21,571.80.

Nifty formed a reasonable negative candle on the daily chart that engulfed the small bullish candle of Friday. This market action indicates a formation of bearish engulfing pattern on the daily chart after a small rise.

“Nifty on the weekly chart closed with the formation of long bear candle, which is also indicating a formation of bearish engulfing pattern (not a classical one) on the weekly chart. Hence, such bearish formation after a long time on the long-term chart signals an emergence of selling pressure in the market at the new highs," said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

He believes the short-term trend of Nifty remains choppy having faced weakness after a small rise on Saturday signal weak bias for the market ahead.Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty Predictions 

The Nifty ended Saturday’s volatile session with a loss of 50 points at around 21,571 level. “The overall consolidation phase may persist for the next few days or until the Nifty stays within the range of 21,500-21,700. Only a decisive breakout on either side could initiate a directional move. A significant decline below 21,500 might trigger a correction towards 21,300 and below," said Rupak De, Senior Technical  Analyst, LKP Securities.Conversely, he believes a robust breakout above 21,700 is needed for a resumption of the uptrend.

Bank Nifty Predictions

The Bank Nifty index outperformed and rallied 357 points to close at 46,058 on January 20. “The Bank Nifty index displayed resilience by forming a higher low on the daily chart while maintaining the immediate support zone of 45,700-45,600. To resume the uptrend, the index needs to overcome the immediate resistance at 46,300, a breakthrough that could trigger short-covering, propelling it towards 46,500/46,800 levels," said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.However, a close below the crucial support of 45,600 might instigate a substantial downside correction towards 44,000, according to Shah.

source : MINT