The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday, tracking mixed cues from global markets, as investors remain cautious after the US-Iran ceasefire was extended.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,430 level, a discount of nearly 154 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market ended sharply higher amid hopes of US-Iran peace talks, with the benchmark Nifty 50 closing above 24,500 level.
The Sensex surged 753.03 points, or 0.96%, to close at 79,273.33, while the Nifty 50 settled 211.75 points, or 0.87%, higher at 24,576.60.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a bullish candle on daily charts, and it is holding an uptrend continuation formation on intraday charts, which is largely positive.
“We are of the view that the short-term market texture is bullish, but due to temporary overbought conditions, some profit booking may occur at higher levels. For day traders, 79,000 would act as immediate support zones. Above these levels, Sensex could continue its positive move towards 79,800 – 80,000. Conversely, below 79,000, we could see a quick intraday correction,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Below these levels, he believes Sensex could retest the levels of 78,700 – 78,500.
Nifty Options Data
In the derivatives segment, notable call writing was observed at the 24,700 and 24,800 strike levels, indicating resistance zones. On the put side, significant writing at 24,500 and 24,400 levels suggests strong support at lower levels.
Nifty 50 Prediction
Nifty 50 formed a bullish candle with a broader body and minor wick on the daily chart, indicating the dominance of the ongoing uptrend.
“A long bull candle was formed on the daily chart that has surpassed the resistance of previous downside gap at 24,400 levels and closed higher. This is a positive indication. The underlying trend of Nifty 50 remains positive. All eyes on the upcoming US-Iran Peace talks which is scheduled in Islamabad this week. The negative outcome of the talk could have knee-jerk action for the Nifty 50 in the short term,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, further sustainable upside could pull Nifty 50 towards 24,800 – 25,000 levels in the near term. However, immediate support is placed at 24,400.
Ajit Mishra, SVP of Research at Religare Broking noted that the Nifty 50 tested 24,600 level and is likely to target the 24,800 zone next, which coincides with the long-term moving average (200 DEMA), supported by strength in banking and financial stocks, along with rotational participation from other sectors.
“A decisive breakout above this zone could accelerate the upmove towards the 25,200 level. On the downside, immediate support has shifted to the 24,000 – 24,200 range. Traders should maintain a positive yet cautious stance, focusing on stock-specific opportunities while keeping position sizes in check, given the lingering geopolitical risks,” said Mishra.
Bank Nifty Prediction
Bank Nifty index jumped 789.10 points, or 1.39%, to close at 57,371.45 on Tuesday, forming a sizeable bullish candle on the daily chart, highlighting robust buying interest.
“Bank Nifty has also managed to close above its 100 day and 200 day EMA, which is a positive technical development and signals improving trend strength. Going ahead, based on the current chart structure, the Bank Nifty index is expected to extend its upward momentum and may retest the 58,000 level, followed by 58,500 in the short term,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
On the downside, the 56,800 – 56,700 zone is likely to act as an immediate support area, he added.
According to Bajaj Broking Research, the bias for Bank Nifty index remains positive above last Wednesday’s gap up area of 55,600 – 55,850.
“The Bank Nifty index is expected to maintain positive bias and gradually head towards 57,700 and 58,500 levels being the previous breakdown area and key retracement of previous decline. From a short-term perspective, support is placed in the range of 54,500 – 54,000 zone, being the confluence of the last week low and 38.2% retracement of the last 3 weeks pullback (49,955 – 57,456),” said the brokerage firm.
Forming higher high and higher low in weekly charts will keep the current pullback trend intact, it noted.
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.
