The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a steady note on Wednesday, tracking upbeat cues from global markets.
The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 23,648 level, a premium of nearly 31 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market ended sharply higher, with the benchmark Nifty 50 closing above 23,500 level.
The Sensex jumped 567.99 points, or 0.75%, to close at 76,070.84, while the Nifty 50 settled 172.35 points, or 0.74%, higher at 23,581.15.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex formed a bullish candle on daily charts and an uptrend continuation formation on intraday charts, indicating that a pullback is likely to continue in the near future.
“For day traders, 75,500 – 75,300 would act as crucial support zones. Above these levels, the pullback could continue till 76,500. Further upside may also persist, potentially lifting Sensex to 77,000. On the flip side, below 75,300, sentiment could change. If Sensex drops below this level, traders may prefer to exit their long positions,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Nifty Options Data
In the derivatives segment, significant call writing for Nifty was observed at the 23,600 strike followed by the 23,800 strike, while notable put writing was seen at the 23,500 and 23,300 strikes.
“Considering the ongoing geopolitical tensions, traders are advised to remain cautious near the key support and resistance levels and wait for a clear breakout on either side before initiating fresh directional trades,” said Hitesh Tailor, Research Analyst – Research at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 index formed a small bullish candle with shadows in either direction, signaling extension of pullback for the second session in a row.
“A reasonable positive candle has been formed on the daily chart with minor upper and lower shadow. Technically, this market action indicates a formation of high wave type candle pattern after a rise and at the immediate hurdle. This could be a challenging factor for bulls to sustain above 23,600 – 23,700 levels in the short term,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying short term trend of Nifty 50 is positive, but the market is not completely out of danger, unless it closes above 23,600 – 23,700 levels in the short term.
“Any failure to sustain the highs could possibly form a new lower top in the market and subsequent weakness. Immediate support is placed at 23,350 levels,” said Shetti.
Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse Ltd. noted that the Nifty 50 index is rebounding from oversold levels, and he anticipates a gradual recovery towards the 23.6% retracement of the recent decline, placed around 23,800.
“However, the broader trend remains weak as long as Nifty 50 sustains below 24,250 levels. On the downside, immediate support is now placed at 23,250, followed by 23,000 levels. Meanwhile, India VIX declined sharply by around 9% and slipped below the 20 mark; a further easing in volatility would lend additional comfort to the bulls,” said Jain.
Bajaj Broking Research said that the Nifty 50 index holding above Tuesday’s low of 23,346 will signal extension of the pullback towards the immediate resistance of 23,700 – 23,800 levels being the confluence of the last week breakdown area and 8 days EMA.
“Key short term support is placed in the 22,700 – 22,400 zone, which coincides with the previous gap area and the 78.6% retracement of the earlier major up move,” said the brokerage firm.
Bank Nifty Prediction
Bank Nifty index gained 462.60 points, or 0.85%, to close at 54,876.00 on Tuesday, forming a bullish candle with a long lower shadow, signaling demand at lower levels.
“In the near term, the 55,250 – 55,300 zone is likely to act as a key resistance. A decisive move above 55,300 could pave the way for further upside towards 55,800. On the downside, the 54,400 – 54,300 band is expected to provide crucial support,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that the broader setup continues to remain weak, as Bank Nifty is still trading well below its short-term moving averages.
“The RSI is placed near 31 and has shown a slight uptick from deeply oversold levels, indicating some easing in downside momentum. However, it continues to remain in the lower range, suggesting that strength is still limited. Nifty Private Bank and Nifty PSU Bank indices, despite showing only marginal gains, indicate that the short-term recovery may persist in the coming session,” said Mehra.
Going ahead, he believes that Bank Nifty sustaining above 54,200 on a closing basis will be important for extending the recovery toward 55,500 – 56,000. The current move appears to be a short-term pullback within a broader declining trend.
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.
