The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Thursday, as rising crude oil prices may dent sentiment, despite upbeat global markets.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,207 level, a discount of nearly 174 points from the Nifty futures’ previous close.
On Wednesday, the Indian stock market snapped its three-session winning streak and ended sharply lower, with the Nifty 50 closing below 24,400 level.
The Sensex crashed 756.84 points, or 0.95%, to close at 78,516.49, while the Nifty 50 settled 198.50 points, or 0.81%, lower at 24,378.10.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a small bearish candle on daily charts, indicating indecisiveness between the bulls and the bears.
“For day traders, as long as Sensex trades below 79,000, the weak sentiment is likely to continue. On the downside, it could slip to 78,200, further downside may also continue which could drag the index up to 78,000. On the flip side, above 79,000, Sensex could retest levels of 79,300 – 79,500,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Nifty Options Data
In the derivatives segment, notable call writing was observed at the 24,500 and 24,600 strike levels, indicating resistance zones. On the put side, significant writing at 24,400 and 24,300 suggests support at lower levels.
Nifty 50 Prediction
Nifty 50 index formed a bearish candle on the daily timeframe with the close near the day’s low, indicating sustained selling pressure throughout the session.
“A reasonable negative candle was formed on the daily chart, which indicates the presence of a crucial hurdle around 24,400 – 24,500 levels. The bullish pattern like higher tops and bottoms continued on the daily chart and present weakness could form a new higher bottom of the pattern,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend of Nifty 50 remains positive and present weakness is likely to find support around 24,200 – 24,100 levels in the next few sessions.
“However, a decisive move above 24,600 could pull Nifty 50 towards the next resistance of 24,800 – 25,000 band,” he added.
Sachin Gupta, VP – Research, Technical Research, at Choice Broking noted that the immediate support for Nifty 50 is placed in the 24,100 – 24,150 zone, while resistance is observed in the 24,550 – 24,600 range.
“The Relative Strength Index (RSI) stands at 56.44, remaining above the midpoint level but showing signs of slight cooling from higher levels. The volatility index, India VIX, rose by 4.38%, indicating a mild increase in market uncertainty,” said Gupta.
Bank Nifty Prediction
Bank Nifty index ended 247.00 points, or 0.43%, lower at 57,124.45 on Wednesday, forming a high wave candle which remained contained inside previous session price range, signaling consolidation after recent strong up move.
“While Nifty and Sensex continue to trade below their 100-day and 200-day EMAs, Bank Nifty has managed to close above these key moving averages for the second consecutive session, highlighting its relative outperformance versus the broader market. Going ahead, the immediate resistance for Bank Nifty is placed in the 57,500 – 57,600 zone,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
He believes any sustainable move above this zone could result in Bank Nifty index extending its up move towards 58,000, followed by 58,400 in the short term.
“On the downside, the zone of 56,600 – 56,500 zone is likely to act as an immediate support,” Shah added.
Bajaj Broking Research expects Bank Nifty index to maintain positive bias and gradually head towards 57,800 and 58,500 levels being the previous breakdown area and key retracement of previous decline.
“Volatility is likely to remain high on account of the geopolitical tension and volatile crude oil prices. 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). Forming higher high and higher low in weekly chart will keep the current pullback trend intact,” 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.
