The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Monday, tracking mixed cues from global markets.
The trends on Gift Nifty also indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 25,167 level, a discount of nearly 38 points from the Nifty futures’ previous close.
On Friday, the equity market ended higher, with the benchmark Nifty 50 closing above 25,100 level.
The Sensex rallied 355.97 points, or 0.44%, to close at 81,904.70, while the Nifty 50 settled 108.50 points, or 0.43%, higher at 25,114.00.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex has formed a bullish candle on weekly charts, and on daily and intraday charts, it is holding a higher bottom formation, which supports a further uptrend from the current levels.
“The immediate resistance for the Sensex lies between 82,200 and 82,300 points. This zone has acted as a key resistance level multiple times. If the index manages to hold above this range, it could trigger a new upward move towards 82,500. On the downside, support is seen between 81,200 and 81,000 points. A drop below this could test the next support near 80,500,” said Mayank Jain, Market Analyst, Share.Market (PhonePe Wealth).
Amol Athawale, VP Technical Research, Kotak Securities believes that as long as Sensex is trading above 81,800, the bullish sentiment is likely to continue.
“On the higher side, 82,200 – 82,400 would act as immediate resistance zones for the bulls. A successful breakout above 82,400 could push Sensex up toward 83,300 – 83,500,” Athawale said.
Nifty OI Data
On the Nifty options front, maximum Call Open Interest (OI) is at 25,200 then 25,300 strike while maximum Put OI is at 25,000 then 25,100 strike. Call writing is seen at 25,100 then 25,150 strike, while Put writing is seen at 25,100 then 25,050 strike.
Options data suggests a broader trading range in between 24,600 to 25,500 zones, while an immediate range between 24,900 to 25,300 levels.
Nifty 50 Prediction
Nifty 50 formed a double-bottom pattern on the daily timeframe, and is now approaching the neckline resistance. On the weekly chart, the index has broken out of a symmetrical triangle pattern with conviction, signaling the potential for further upside.
“A small positive candle was formed on the daily chart with minor upper and lower shadow, which indicates an uptrend continuation pattern amidst choppy movement. The crucial hurdle of the down sloping trend line and previous two weeks high has been surpassed quietly around the 25,000 mark and the market closed higher. Nifty 50 closed above the weekly close of the last eight weeks at 25,100 levels, which is signaling a positive outlook for the coming week,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend of Nifty 50 continues to be positive, and having sustained above the key overhead resistance of 25,000 – 25,100 levels, Nifty 50 is likely to move towards the next overhead resistance of 25,350 – 25,400 by next week. Immediate support is placed at 24,900 levels.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking Ltd. noted that the Nifty 50 index is trading comfortably above all key short-term and long-term moving averages, while the momentum indicator MACD has already given a buy crossover above the zero line.
“The support base continues to rise, with the immediate support now seen at the 50-day moving average, currently placed around the 24,900 level. The strategy should be to buy on declines as we have already seen a recent rally hence some profit taking at the higher levels can’t be ruled out. Given the recent rally, some profit-taking at higher levels is possible, so the recommended strategy is to buy on dips,” said Jain.
Mayank Jain said that the resistance for the Nifty 50 is seen between 25,250 and 25,350 points, and a breakout above this range could pave the way for gains toward 25,500 in the coming week. On the downside, near-term support is expected between 24,950 and 24,850 points, with a secondary support zone around 24,500 to 24,400 points.
Bank Nifty Prediction
Bank Nifty index gained 139.70 points, or 0.26%, to close at 54,809.30 on Friday, forming a green candle with a long upper shadow on the daily scale, while on the weekly chart it formed a bullish candle, indicating continued strength.
“The immediate resistance zone for Bank Nifty is placed near 54,900 – 55,000 levels, where the trend line resistance and 34-DEMA hurdles are located. On the downside, the recent breakout point near 54,500 will serve as good support. Thus, traders are advised to maintain a buy-on-dips approach in Bank Nifty for the short term,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates Ltd.
Om Mehra, Technical Research Analyst, SAMCO Securities said that the RSI has advanced to 50, suggesting a gradual pickup in strength. The MACD has also displayed a bullish crossover, supported by positive histogram bars. The index has held above the 9-EMA and 20-EMA, while the 50-DMA continues to act as a major resistance that needs to be crossed to gain further strength.
“The immediate support for Bank Nifty is placed at 54,500 – 54,400, while resistance remains firm at 55,100 – 55,250. A close above this band could accelerate the move toward 55,500, whereas failure to cross may keep the index range-bound. The overall outlook has turned more stable, with a buy-on-dip approach favoured as long as Nifty Bank holds above 54,300,” Mehra 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.
