The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday after the announcement of the US-Iran ceasefire deal spurred a rally in global markets.
The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 23,840 level, a premium of nearly 689 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market extended its rally for the fourth consecutive session and ended higher, with the benchmark Nifty 50 closing above 23,100 level.
The Sensex jumped 509.73 points, or 0.69%, to close at 74,616.58, while the Nifty 50 settled 155.40 points, or 0.68%, higher at 23,123.65.
The US and Iran have agreed to a two-week ceasefire deal, with the US President Donald Trump announcing to halt military attacks in exchange for Tehran reopening the Strait of Hormuz.
The Reserve Bank of India (RBI) will announce its monetary policy today. The RBI Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) is expected to maintain a status quo on repo rate.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex continues to exhibit a gradual strengthening with formation of higher highs and higher lows on lower time frames, indicating continuation of the short-term recovery trend.
“Key technical levels suggest that support for Sensex is placed in the 74,000 – 74,200 zone, which is likely to act as a demand area on declines, while resistance is seen around 75,000 – 75,350, where upside may face supply and profit-booking pressure,” said Hitesh Tailor, Technical Research Analyst at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 index formed a bullish candlestick pattern with a higher high and a higher low for the second session in a row, signaling continuation of the pullback from the oversold territory.
“A long bull candle was formed on the daily chart with lower shadow. Technically, this market action indicates an attempt of decisive breakout of a crucial hurdle around 23,000 levels. This is a positive indication and the sharp bounce back of the last three sessions signal formation of a crucial bottom reversal pattern in Nifty 50 at the recent low of 22,182,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend of Nifty 50 continues to be positive, and the next upside levels to be watched are around 23,500 – 23,600. Immediate support is placed at 22,900.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking noted that the Nifty 50 index is showing early signs of a short-term base formation, supported by a breakout from a falling wedge pattern on the daily chart.
“Momentum indicators and oscillators have also reversed, indicating a buy crossover. The positive momentum could continue towards the immediate hurdle of 23,470, and a sustained move above this level may open the door for 24,000 in the near term. Meanwhile, support has shifted higher to around 22,600 levels. The volatility index has also cooled off below 25, and any further decline is likely to provide added comfort to the bulls,” said Jain.
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in said that the immediate support for Nifty 50 is placed around 23,000 – 22,900, which will be a crucial zone to watch.
“As long as Nifty sustains above these levels, the bullish structure remains intact. On the upside, 23,200 – 23,300 will act as the key resistance zone. A sustained move above this range could lead to fresh buying momentum and further extension of the rally in the near term,” said Arora.
Bank Nifty Prediction
Bank Nifty index ended 107.15 points, or 0.20%, higher at 52,716.25 on Tuesday, forming a bullish candle with minor lower wick on the daily chart, indicating strong buying interest around day’s low.
“Going ahead, the immediate resistance for Bank Nifty is placed in the 53,100 – 53,200 zone. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 53,500, followed by 53,800 in the short term. On the downside, the zone of 52,300 – 52,200 zone is likely to act as an immediate support,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Bajaj Broking Research expects a follow through strength above Tuesday’s high 52,800 will open further upside towards 53,500 levels for Bank Nifty, while a failure to do so will lead to consolidation in the range of 50,000 – 52,700.
“On the downside, weakness below the psychological 50,000 levels will signal extension of the decline towards the 200 weeks EMA placed around 48,900 levels in the coming weeks. For any meaningful pause in the ongoing downtrend, the Bank Nifty index needs to establish a sustained pattern of higher highs and higher lows in the daily chart, along with a close above recent high of 54,150,” 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.
