Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 2

livemint.com:

Catch Live Market Updates here On Monday, the domestic benchmark indices hit a new high but witnessed profit booking at higher levels, ending flat with a positive bias. The Sensex gained 31.68 points to close at 72,271.9, while the Nifty 50 ended 10.50 points, or 0.05%, higher at 21,741.90. Nifty 50 formed a small body of positive candles on the daily chart with upper and lower shadows.

Technically, this pattern indicates the formation of a high wave type candle pattern and this indicates high volatility in the market at the highs. “The positive chart pattern like higher tops and bottoms is intact on the daily chart and Nifty is currently forming a new higher top of the sequence. Still, there is no confirmation of any top reversal pattern in the high market," said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

Also Read: Indian stock market: 6 things that changed for market overnight - Gift Nifty, rise in oil prices to steady dollar He believes the near-term uptrend status of Nifty remains intact. However, the market has started to exhibit high volatility around the new highs, which signal chances of another round of downward correction from the highs. “A decisive move above 21,850 levels is expected to nullify the present bearish effect and that could open more upside for the near term," Shetti said.