Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 6

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Monday tracking gains in global markets.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,130 level, a premium of nearly 38 points from the Nifty futures’ previous close.

On Friday, the domestic equity market ended sharply lower due to profit booking.

The Sensex plunged 720.60 points, or 0.90%, to close at 79,223.11, while the Nifty 50 settled 183.90 points, or 0.76%, lower at 24,004.75.

Nifty 50 formed a long bear candle on the daily chart that placed beside the long bull candle of Thursday.

“Technically, this pattern is indicating a profit booking in the market after a stellar rise on Thursday. Nifty is currently placed near the support of 23,900 levels, which is halfway of long bull candle of Thursday and also support as per change in polarity. The opening downside gap of 19th December has been filled at 24,150, but the market was not able to sustain above the said gap area in the subsequent session,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

A reasonable bull candle was formed on the weekly chart with upper and lower shadow, which is indicating a high wave type candle formation.

“The near-term uptrend remains intact for Nifty 50. A decisive move above Thursday’s high (24,226) could open renewed buying participation towards 24,400 - 24,500 levels. Immediate support is around 23,930 - 23,840 levels,” said Shetti.

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

Nifty 50 Prediction

Nifty 50 witnessed profit booking on January 3 and closed the day lower by 183 points.

“Nifty 50 was unable to break above the 50 EMA (Exponential Moving Average) on the daily timeframe, resulting in a market correction. However, sentiment remains positive as the index closed above 24,000. The RSI shows a bullish crossover. On the upside, the index may rise towards 24,200–24,220, with a break above 24,220 potentially pushing it to 24,500. Conversely, a decisive move below 24,000 could lead the index towards 23,700,” said Rupak De, Senior Technical Analyst at LKP Securities.

VLA Ambala, Co-Founder of Stock Market Today, highlighted that on Friday’s session, Nifty 50 index formed a Doji candlestick pattern on the weekly chart, signaling market uncertainty.

“According to the technical chart, the major index shows an RSI reading of 49 and has yet to test the 20-month EMA, which could occur in the next few weeks based on the Nifty’s price pattern. According to the market analysis, if the Nifty falls below 23,510, it could present a sell-on-rise opportunity to investors, while any move above 24,450 may indicate a potential bullish trend. Nifty 50 can hover near support levels of 23,970 and 23,800, with resistance at 24,250 and 24,310,” Ambala said.

Bank Nifty Prediction

Bank Nifty index ended 616.75 points, or 1.2%, lower at 50,988.80 on Friday, forming a long bearish candlestick pattern on the daily charts.

“Bank Nifty is trading within a tight range, consistently finding support near 50,500 and resistance around 51,800, trying to form a base at current area. The range aligns with a long-term ascending trendline, further reinforcing the possibility of bottom formation at current levels. The key support is placed at 50,600, and a breach below this could pull the index toward 50,000. Conversely, immediate resistance is seen at 51,300; sustaining above this may trigger buying momentum toward 51,900,” said Puneet Singhania, Director at Master Trust Group.

According to him, the Bank Nifty index appears poised for recovery, favoring a “buy on dips” strategy as it stabilizes and shows signs of forming a robust bottom.

Amol Athawale, VP - Technical Research, Kotak Securities, noted that for Bank Nifty, the 200-day SMA, or the 50,500 - 50,600 range, would act as a critical support zone.

“On the upside, the 50-day and 20-day SMAs, or the 51,800-52,200 range, could be crucial resistance areas for the bulls,” Athawale said.

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 making any investment decisions.