Nifty's Bullish Sentiment Returns, Sellers Likely to Test Levels Again in Friday's Market
Nifty Prediction for Tomorrow: Bullish sentiment has returned to Nifty. In Friday's market, we may witness a gap-up opening, which could push sellers to distant levels. On Thursday, Nifty showed a bullish movement during its weekly expiry, establishing strong support at the 21,500 level (Wednesday's lower level). Nifty kept sellers at bay on Thursday, closing at 21,658 with a significant gain of 141 points. During this period, Nifty reached a high of 21,685.65. Nifty formed a bullish candle on the daily chart, with its high being the low of a doji candle formed on December 29, 2023, and January 1, 2024. This indicates that Nifty, with an upward momentum, has hit a resistance level at 21,685.
What Nifty Could Do on Friday After a significant downturn, Nifty recovered by 141 points on Thursday, bringing back bullish sentiment. On Friday, we may witness a gap-up opening in Nifty, which could attract sellers towards distant levels. The next resistance for Nifty is not far away, standing at 21,731. If Nifty breaks this level in Friday's market, it could extend its upward movement. Apart from 21,731, a significant resistance for Nifty is at 21,755. The previous two candles on the daily chart faced selling pressure after reaching this level. Sellers could become active once again at this level.
It would be beneficial for Nifty to spend some time consolidating around this level. If Nifty breaks through after consolidation, it could move up to 21,800, otherwise, sellers might dominate again from the 21,755 level.
Sidelining in the Market The strength shown by Nifty on Thursday suggests that between 21,680 and 21,700, Nifty could be in a sideways trend. Any consolidation between these levels would prepare Nifty for further upward movement. If a gap-up opening occurs on Friday, the chances of Nifty being in a sideways trend will increase. Sellers are unlikely to attempt to enter at current levels of Nifty. Any significant sell-off in Nifty may only occur if Nifty drops below 21,600 or reaches the upper resistance level.
