The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a steady note on Wednesday, tracking gains in global markets, with underlying sentiment expected to remain cautious amid rising geopolitical tensions in the Middle East.
The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading around 24,032 level, a premium of nearly 8 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market ended lower, with the benchmark Nifty 50 closing below 24,100 level.
The Sensex plunged 561.46 points, or 0.72%, to close at 77,054.94, while the Nifty 50 settled 158.95 points, or 0.66%, lower at 24,052.05.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a bearish candle on daily charts and a lower top formation on intraday charts, indicating further weakness from the current levels.
“We are of the view that the intraday market texture is non-directional; perhaps traders are waiting for either side to breakout. On the downside, 77,000 would act as a crucial support zone, while 77,300 would be the key resistance area for the bulls. Selling pressure below 77,000 is likely to accelerate, and Sensex could retest the 50-day SMA (Simple Moving Average) or levels around 76,300 – 76,000,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the flip side, he believes above 77,300, the chances of hitting 77,500 – 77,800 would turn bright.
Nifty 50 Prediction
Nifty 50 formed a bearish candle resembling an inverted hammer with a long upper wick.
“A small candle was formed on the daily chart with a long upper shadow, placed beside the long bull candle of Monday. Technically, this pattern signals an inside day type formation amidst range movement. The short-term trend of Nifty 50 remains choppy with weak bias, but the near-term uptrend status remains intact,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, on the way up, Nifty 50 could encounter strong hurdles around 24,300 and 24,500 levels in the short term, while next lower support to be watched is around 23,800 levels.
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in noted that the immediate support for Nifty 50 is placed around 23,950 – 23,900, followed by 23,800, while on the upside, resistance is now seen near 24,150 – 24,250.
“A sustained move above this zone could revive buying momentum. As long as benchmark indices hold above their immediate support levels, the broader trend remains constructive. Traders may continue to adopt a buy-on-dips approach while maintaining disciplined risk management and keeping a close watch on key support zones,” said Arora.
Bank Nifty Prediction
Bank Nifty index slipped 669.15 points, or 1.15%, to close at 57,462.30 on Tuesday, forming a bearish candle on the daily chart.
“Despite the weakness, the Bank Nifty index continues to trade above its key moving averages, indicating that the broader trend remains intact. However, momentum indicators and oscillators are currently reflecting a lack of directional strength, suggesting a sideways bias in the near term,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Going forward, he expects the 56,900 – 56,800 zone to act as immediate support for the Bank Nifty index, and a sustained move below 56,800 could intensify selling pressure and lead to a further correction towards the 56,200 level.
“On the upside, the 57,800 – 57,900 range remains a crucial resistance area for Bank Nifty,” said Shah.
Bajaj Broking Research highlighted that the Bank Nifty index, in the last 5 weeks, is seen consolidating in the range of 58,700 – 56,500. It expects the index to extend the same and only a breakout or breakdown will signal the next directional move.
“On the upside, 58,700 (June’s high) remains the immediate hurdle. A decisive close above this level would confirm a breakout from the ongoing consolidation and could trigger the next leg of the rally towards 59,300 and eventually 60,000 levels in the coming weeks,” said the brokerage firm.
According to Bajaj Broking Research, the Bank Nifty index has major support placed at 56,500 on the downside, where the 20-week and 50-week EMAs converge along with the previous week’s low, making it a strong demand zone.
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.
