The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday, following upbeat cues from global markets, amid hopes of a US-Iran ceasefire deal.
The trends on Gift Nifty also indicate a strong start for the Indian benchmark index. The Gift Nifty was trading around 23,804 level, a premium of nearly 136 points from the Nifty futures’ previous close.
On Wednesday, the Indian stock market ended marginally higher, with the benchmark Nifty 50 holding above 23,600 level.
The Sensex gained 117.54 points, or 0.16%, to close at 75,318.39, while the Nifty 50 settled 41.00 points, or 0.17%, higher at 23,659.00.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex continues to trade within a broader sideways range for the sixth consecutive trading session, reflecting cautious market sentiment and lack of strong directional momentum.
“We are of the view that the short-term market texture is non-directional, and this non-directional activity is likely to continue in the near future. For day traders, 75,000 and 74,500 would act as immediate support zones, while 75,800 – 76,000 could be the key resistance areas for the bulls,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the higher side, he believes post-76,000, Sensex could move up to 76,300 – 76,500, while a failure to hold 74,500 could push the index towards 74,200 – 74,000.
“As the intraday market texture is non-directional, level-based trading would be the ideal strategy for day traders,” added Chouhan.
Nifty Options Data
In the derivatives segment, notable call writing was observed at the 23,700 and 23,800 strikes, while put writing was concentrated at the 23,600 and 23,500 levels, indicating immediate support shifting higher with resistance near upper levels.
Nifty 50 Prediction
Nifty 50 formed a bullish candlestick pattern on the daily chart after recovering sharply from lower levels and filling the opening gap-down. The formation indicates buying strength emerging at lower levels and improving short-term sentiment in the market.
“A long bull candle has formed at the lows on the daily chart, which indicates emergence of buying from the lows. Nifty 50 has been moving within a high low range of 23,800 – 23,200 levels over the last few sessions and is gradually rising by forming higher lows,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend of Nifty 50 is range bound, and a decisive breakout of 23,800 level is likely to confirm further upside in the near term. Any weakness from the highs could open small downward corrections within a range.
Nilesh Jain, VP- Head of Technical and Derivative research, Centrum Finverse Ltd noted that the immediate hurdle for Nifty 50 continues to be the 50-DMA, placed around 23,730 levels, and a decisive breakout above this mark is required for the next leg of the upmove towards 24,000 levels.
“The broader structure remains range-bound, and we expect the Nifty 50 to trade within the 23,300 – 24,000 range, with these levels acting as key support and resistance respectively. Meanwhile, the volatility index, ‘INDIAVIX’, cooled off by 2% to 18.30 levels, and any further decline in volatility is likely to provide additional comfort to the bulls,” said Jain.
Bank Nifty Prediction
Bank Nifty index rallied 153.05 points, or 0.29%, to end at 53,562.20 on Wednesday, forming a bullish candle with a lower high and a lower low, highlighting strong pullback after a gap down opening.
“Despite the strong intraday move, Bank Nifty continues to trade significantly below its key moving averages. The RSI is placed slightly above the 40 mark, indicating the absence of strong directional momentum. Meanwhile, the DI- continues to remain above the DI+, highlighting stronger seller presence compared to buyers,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Going ahead, the immediate support for Bank Nifty is placed in the 53,100 – 53,000 zone, and any sustainable move below this zone could result in the index extending its weakness towards 52,700, followed by 52,400 in the short term, he added.
On the upside, he believes the immediate resistance for the Bank Nifty index is placed in the 53,900 – 54,000 zone.
Bajaj Broking Research highlighted that the Bank Nifty index for the second time in the last three sessions has rebounded from near the key support area, highlighting buying demand at lower levels.
“Bank Nifty index likely to consolidate in the range of 52,700 – 54,700. The index holding above the key support area of 52,700 – 52,400 will lead to a pullback towards the recent breakdown area of 54,000 and 54,700. However, the Bank Nifty index needs to form higher high and higher low on a sustained basis in the daily chart and a move above the breakdown area of 54,400 – 54,700 to signal a pause in the recent downtrend,” said the brokerage firm.
According to Bajaj Broking Research, key support for Bank Nifty index is placed at 52,700 – 52,400 levels being the confluence of the lower band of the 8th April gap area and the 61.8% retracement of the previous pullback (49,955 – 57,456).
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.
