The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday, tracking a rally in global markets, on hopes of US-Iran peace talks and de-escalation in the Middle East conflict.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,303 level, a premium of nearly 66 points from the Nifty futures’ previous close.
On Wednesday, the Indian stock market ended sharply higher, with the benchmark Nifty 50 closing above 24,200 level.
The Sensex jumped 1,263.67 points, or 1.64%, to close at 78,111.24, while the Nifty 50 closed 388.65 points, or 1.63%, higher at 24,231.30.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a small bullish candle on daily charts, while it is holding a higher bottom formation on intraday charts, which is largely positive.
“We are of the view that the intraday market texture is upward, but for day traders, it would be ideal to buy on intraday dips and sell on rallies. On the downside, 77,500 and 77,300 would act as key support zones for Sensex, while 78,500 – 78,700 could serve as crucial resistance levels for the bulls,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
However, below 77,300, he believes the sentiment could change, and in that case, traders may prefer to exit their long positions.
Nifty Options Data
In the derivatives segment, significant call writing was observed at the 24,300 and 24,500 strike levels, indicating overhead resistance. On the put side, significant writing at 24,200 and 24,000 levels suggests strong support at lower levels.
Nifty 50 Prediction
Nifty 50 formed a small-bodied bullish candle on the daily chart, indicating that both buyers and sellers are holding positions following the recent rally.
“After the formation of a series of lower tops and bottoms on the daily chart in last month, Nifty 50 seems to have formed a new higher bottom on Monday at 23,555 levels. This market action indicates significant reversal of trend on the upside. The huge opening upside gap of 8th April remains partially filled after five sessions of its formation. This is a positive indication,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying short-term trend of Nifty 50 continues to be positive, and on the way up further, Nifty 50 could find overhead hurdles around 24,500 and 24,800 levels in the near term. However, immediate support is placed at 24,000 – 23,900 levels.
Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse noted that the Nifty 50 index has retraced 50% of the entire decline from the high of 26,341 to the recent low of 22,183, with this level placed around 24,255.
“The next key resistance is the 50-DMA, positioned at 24,446, which is likely to be tested in the near term. Momentum indicators and oscillators continue to support the uptrend, with RSI sustaining above the 55 level. On the volatility front, India VIX has cooled off sharply by 9%, slipping below the 19 mark. Any further decline in volatility would provide additional support to the bullish sentiment,” said Jain.
Overall, the broader structure remains positive as long as Nifty 50 holds above the 23,500 level, he added.
According to Mayank Jain, Market Analyst, Share.Market, the 24,000 psychological mark has now become an immediate support zone, and if the Nifty 50 index slides, the 23,800 level is expected to act as a strong floor.
“The Nifty 50 index faces its next hurdle at 24,500. A decisive close above this could lead Nifty 50 toward 24,800 in the near term,” he said.
Bank Nifty Prediction
Bank Nifty index ended 696.90 points, or 1.25%, higher at 56,301.95 on Wednesday, forming a doji candle, indicating hesitation near resistance levels.
“Going ahead, the 55,800 – 55,700 zone will act as immediate support. On the upside, the 200-day EMA zone of 56,700 – 56,800 will act as a key resistance, and a sustained move above this band could trigger further upside toward 57,300 levels,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that on the daily chart, the Bank Nifty index has moved above the 50% Fibonacci retracement level and is now holding above this zone on a closing basis.
“This level now acts as immediate support, while the Bank Nifty index approaches the next resistance band near the 61.8% retracement around 57,200. The index continues to trade above the 20-day moving average, indicating that near-term strength is intact. The RSI is placed near 55, indicating improving momentum, while the ADX near 30, suggests that the ongoing move still carries directional strength,” said Mehra.
On the upside, he added, 56,800 – 57,200 remains the immediate resistance zone, and a sustained move above this band can extend the move further. On the downside, 55,800 – 55,400 remains the immediate support zone.
“However, yesterday at the fag-end of the session, mild profit booking was observed along with mean reversion toward the close, indicating some exhaustion near higher levels,” said Mehra.
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.
