The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Friday as rising crude oil prices due to the US-Iran war continue to dent investor sentiment.
The trends on Gift Nifty also indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 23,560 level, a discount of nearly 168 points from the Nifty futures’ previous close.
On Thursday, the Indian stock market crashed again, with the benchmark Nifty 50 closing below 23,700 level.
The Sensex slumped 829.29 points, or 1.08%, to close at 76,034.42, while the Nifty 50 settled 227.70 points, or 0.95%, lower at 23,639.15.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex is forming a lower top on intraday charts, which suggests that the correction wave is likely to continue in the near future.
“For day traders, 76,700 would act as a trend decider level. Below this, Sensex could slip to 75,700 – 75,300. On the flip side, above 76,700, a pullback move could extend to 77,000 – 77,500. The intraday market texture is volatile and non-directional; hence, level-based trading would be the ideal strategy for traders,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Nifty OI Data
In the derivatives market, notable put writing at the 23,700 strike and significant call writing at the 24,000 strike indicate that the Nifty 50 index may trade within this range in the near term.
“Traders are advised to stay cautious around support levels and avoid taking aggressive directional positions unless the index manages a decisive breakout above resistance,” said Hitesh Tailor, Research Analyst – Research at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 formed a small negative candle on the daily chart with upper and lower shadow.
“Technically, this market action signals a formation of high wave type candle pattern at the swing lows. The current market action reflects volatility at the lower supports. Sometime, such high wave pattern formations after a down trend or at the supports signal possible bottom reversal after the confirmation. Positive divergence pattern has also started to form in the Nifty daily RSI,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend of Nifty 50 remains weak, but the overall chart pattern indicates a possibility of lower bottom formation around the supports of 23,500 – 23,400 in the short term. A sustainable move above the hurdle of 23,850 could confirm reversal on the upside.
Ajit Mishra – SVP, Research, Religare Broking Ltd noted that the Nifty 50 index has breached the previous swing low at 23,700 but managed to defend the support around the 23,500 level. Going ahead, a decisive break below this band could trigger the next leg of decline towards the 23,000 – 23,200 zone.
“On the upside, any recovery towards the 24,000 – 24,300 region is likely to face stiff resistance. Amid the prevailing uncertainty and negative market trend, participants are advised to align their index positions with the broader market trend while keeping position sizes in check,” said Mishra.
Bank Nifty Prediction
Bank Nifty index declined 634.80 points, or 1.14%, to close at 55,100.95 on Thursday, forming a small bodied candle on the daily chart with shadows on either side, indicating indecision at current levels.
“Technically, all key moving averages and momentum indicators continue to signal a bearish bias. Going ahead, the 54,600 – 54,500 zone will act as a crucial support for the Bank Nifty index. A sustained break below 54,500 could extend the decline towards the 53,900 level,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
On the upside, he added that the 55,500 – 55,600 zone will remain a key resistance area, likely to cap any pullback rallies.
Bajaj Broking Research highlighted that the Bank Nifty index formed a high wave candle with a small real body and shadows in either direction, signaling continuation of the corrective decline.
“The short-term bias remains negative as long as the Bank Nifty index trades below the 56,500 mark. Failure to reclaim this level could lead to further downside in the coming sessions, with the index potentially drifting towards the 100-week EMA, which is placed around the 54,000 level,” said the brokerage firm.
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.
