The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat on Wednesday, tracking a mixed trend in global markets, amid cautiousness over the US-Iran peace deal.
The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading around 24,004 level, a premium of nearly 3 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market extended its bullish momentum into the third consecutive trading session, with the benchmark Nifty 50 closing near 24,000 level.
The Sensex rallied 544.15 points, or 0.71%, to close at 76,808.48, while the Nifty 50 settled 135.25 points, or 0.57%, higher at 23,989.15.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a small bullish candle and is also maintaining a higher bottom formation on intraday charts, which supports a further uptrend from the current levels.
“We are of the view that the intraday market trend is upward, but a fresh rally can only be expected after the 77,000 level is surpassed. Post the 77,000 breakout, Sensex could move up to 77,300 – 77,500. On the flip side, 76,500 and 76,300 would act as key support zones for day traders. Below 76,300, the uptrend would become vulnerable,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
If Sensex falls below this level, he advises traders to exit their long positions.
Nifty Options Data
In the derivatives segment, significant call writing was observed at the 24,000 and 24,200 strikes, while put writing was concentrated at the 24,000 and 23,900 levels, suggesting strong support near the 24,000 zone and resistance around higher levels.
Nifty 50 Prediction
Nifty 50 index formed a bullish inside-bar-like candlestick structure on the daily timeframe, indicating consolidation within the previous session’s range while maintaining a positive bias.
“A reasonable positive candle was formed on the daily chart on Tuesday, that is placed beside the small red candle of the previous session. The opening upside gap of Monday remains intact with partially filled after two sessions of its formation. This is a positive indication and this up gap could be considered as a bullish breakaway gap which is normally formed near important bottom reversals,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend of Nifty 50 continues to be positive, and a sustainable move above 24,000 – 24,100 levels could open further upside towards 24,500 levels in the near term. Immediate support is placed at 23,800 levels.
Om Mehra, Technical Research Analyst, SAMCO Securities noted that the Supertrend indicator on the daily chart is placed at 24,030, and a close above this level would be a significant trigger for the next leg of the rally.
“The RSI is positioned at 59, and it reflects that Momentum is strengthening. The MACD has witnessed a positive crossover, further supporting the improving trend. The 24,030 – 24,100 zone, which coincides with the Supertrend level, will act as the immediate resistance area. A decisive close above this band could pave the way for a move towards 24,300 – 24,380,” said Mehra.
On the downside, he believes that the 23,880 – 23,800 zone has now turned into a key support area, and as long as the Nifty 50 index holds above this zone, the near-term outlook remains bullish.
Bank Nifty Prediction
Bank Nifty index ended 98.35 points, or 0.17%, higher at 57,297.15 on Tuesday, forming a small body candle on daily scale with shadows on either side, which shows indecisiveness.
“Bank Nifty index is trading above its short and long-term moving averages. The daily RSI is quoting above 60 mark and it is in rising mode. Going ahead, the zone of 57,700 – 57,800 is likely to act as an immediate hurdle for the Bank Nifty index. A decisive move above 57,800 could trigger a fresh round of buying, paving the way for an upside rally towards the 58,500 level in the short term,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
On the downside, he believes that the zone of 56,800 – 56,700 remains a crucial support area, and holding above this range will be essential to maintain the positive bias.
Bajaj Broking Research expects the Bank Nifty index to maintain overall positive bias and head towards 58,300 levels in the coming sessions, being the measuring implication of the last four-week range breakout (52,700 – 55,500).
“Bank Nifty index sustaining above 55,500 – 56,000, will keep the overall bias positive and any dips should be viewed as buying opportunities. Only a decisive breach below the 55,500 support level would negate the positive outlook,” 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.
