The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to have flat-to-negative start on Tuesday, 1 September, amid weak global cues.
The Gift Nifty trends also indicated a muted start for the Indian benchmark index. The Gift Nifty was trading at around 24,197.5, a 54-point discount to the Nifty futures’ previous close.
The domestic equity indices ended negative in the previous session, with the benchmark Nifty 50 closing below 24,100 level.
The Sensex declined 307.24 points, or 0.40%, to close at 76,957.27, while the Nifty 50 settled 95.25 points, or 0.39%, lower at 24,080.40.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
According to Shrikant Chouhan, Head – Equity Research at Kotak Securities, the short-term market outlook remains weak. However, he said the market could witness a quick technical pullback if the Nifty 50 sustains above 24,000 and the Sensex holds above 76,600.
Chouhan expects the Nifty to potentially rebound towards 24,200–24,300, while the Sensex could move up to 77,300–77,500 if the key support levels hold.
On the downside, he cautioned that selling pressure could intensify below 24,000 on the Nifty 50 and 76,600 on the Sensex. A break below these levels could drag the Nifty 50 towards 23,850–23,800 and the Sensex towards 76,300–76,000, he said.
Nifty 50 Prediction
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the Nifty 50 continued its downward movement on Monday, tracking weakness in global markets. The index closed 95 points lower, although it recovered marginally from the day’s low.
Shetti noted that the Nifty 50 formed a small negative candle with a long lower shadow on the daily chart. From a technical perspective, this indicates a bullish hammer-type formation, although it does not qualify as a classical hammer pattern. He said a decisive close above 24,130 would be required to confirm the bullish setup.
According to Shetti, the 24,000 level remains a crucial support zone, as it coincides with the recent swing low and the previous opening upside gap formed on 29 July. The index managed to recover from its lows after testing this area on Monday.
“As long as the 24,000 support holds, there is a possibility of a bounce in the market in the near term,” Shetti said.
According to Hitesh Rathi, Technical Analyst – Equity & Derivatives at Angel One, the technical structure of the Nifty remains cautious, with sellers continuing to dominate despite an intraday recovery from key support levels. He said the broader setup remains tilted in favour of the bears, and unless the index stages a meaningful recovery over the next few sessions, it could move towards its recent swing lows.
Rathi highlighted that the Nifty has breached a key upward-sloping trendline that had been acting as support, signalling a significant shift in market dynamics. The breach of the 10-column moving average on the Daily 0.1% × 3 and 0.25% × 3 Point & Figure charts also indicates a downside reversal in the trend, adding to the cautious technical setup.
He further noted that a break below 24,038 could trigger a follow-through Double Bottom Sell pattern following a bearish 100% Pole, strengthening the bearish case.
On the levels front, 24,000 remains the immediate support, while the stronger support zone is placed at 23,800–23,700. On the upside, 24,150–24,200 is likely to act as the immediate resistance zone, followed by a stronger hurdle at 24,300–24,360, Rathi said.
Bank Nifty Prediction
According to Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, the Bank Nifty traded within a narrow 389-point range for most of Monday’s session. However, a sharp surge during the closing auction session (CAS) lifted the index, helping it close above the 58,000 mark with a gain of 0.92%.
Shah noted that Bank Nifty has remained range-bound for the past 19 trading sessions, moving within a band of approximately 1,075 points. This indicates the absence of a clear directional trend, while the current technical setup continues to point towards a consolidation phase.
He added that key momentum indicators and oscillators are also suggesting a sideways market structure.
Going ahead, Shah expects the 58,200–58,300 zone to act as an immediate resistance area. On the downside, the 57,500–57,400 zone is likely to provide important support for the index.
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.
