The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Monday, tracking mixed cues from global markets, as investors monitor the progress in the US-Iran peace talks.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,150 level, a premium of nearly 93 points from the Nifty futures’ previous close.
On Friday, the Indian stock market snapped its five-session winning streak and ended lower, with the benchmark Nifty 50 slipping below 24,100 level.
The Sensex dropped 607.08 points, or 0.78%, to close at 76,802.90, while the Nifty 50 settled 154.90 points, or 0.64%, lower at 24,013.10.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex gained 1.69% last week, and formed a Doji candlestick pattern on weekly charts, indicating indecisiveness between the bulls and bears.
“We are of the view that the short-term market outlook remains positive, and a strategy of buying on dips and selling on rallies would be ideal for traders. In the near future, crucial support zones for Sensex would be 76,200 and 75,900 levels. Meanwhile, 77,300 – 77,900 could be key resistance levels for the bulls. However, below 75,900, the uptrend would become vulnerable,” said Amol Athawale, VP Technical Research, Kotak Securities.
If Sensex falls below this level, he advises traders to consider exiting their long positions.
Mayank Jain, Market Analyst, Share.Market by PhonePe said that 76,300 – 76,500 range may act as the primary support zone for Sensex, while 78,600 – 78,800 may act as the supply zone in the near term.
Nifty Derivatives Data
On the Nifty options front, maximum Call Open Interest (OI) is at 24,000 then 24,200 strike, while maximum Put OI is at 23,900 then 23,500 strike. Call writing is seen at 24,000 then 24,100 strike, while Put writing is seen at 23,900 then 23,500 strike.
“Options data suggests a broader trading range in between 23,500 to 24,500 zones, while an immediate range between 23,800 to 24,200 levels,” said Chandan Taparia, Head Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services Ltd.
Nifty 50 Prediction
Nifty 50 formed a small-bodied bullish candle on the daily chart. For the week, the index rose 1.65% and formed a Doji-like candlestick pattern on the weekly chart, reflecting indecision after the recent recovery.
“A small green candle was formed on the daily chart with minor lower shadow. Technically, this market action indicates minor downward correction from the highs. The crucial overhead resistance of 24,150 (previous opening downside gap of May 11 and swing high of May 26) weighed high and resulted into dip,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the present weakness in Nifty 50 is unlikely to damage the near-term uptrend status of the market, and the Nifty 50 index is expected to bounce from the lows and could surpass the hurdle of 24,150 levels again in the short term. Immediate support is placed at 23,800.
Dr. Ravi Singh, Chief Research Officer from Master Capital Services Ltd. noted that the Nifty 50 index closed firmly above both its 21-day and 55-day EMA, while sustaining above the breakout zone of a falling wedge pattern on the daily chart, indicating strengthening bullish momentum.
“The immediate support zone is placed at 23,700 – 23,800, which coincides with the key moving averages and is expected to attract buying interest on declines. On the upside, resistance is seen at 24,200. A decisive breakout above this level could trigger further upside towards 24,500. We recommend traders continue to adopt a buy-on-dips approach,” said Singh.
Bank Nifty Prediction
Bank Nifty index closed 278.05 points, or 0.48%, lower at 57,685.75 on Friday. Last week, the index rallied 1.53%, forming a Doji candlestick pattern on the weekly chart, indicating indecision after the recent sharp recovery.
“On the technical front, the Bank Nifty index is comfortably trading above both its short-term and long-term moving averages, which are gradually trending higher. Notably, all the constituent stocks within the index are also trading above their 20-day and 50-day EMA levels, reinforcing the overall strength in the banking space,” said Sudeep Shah – Head of Technical and Derivatives Research at SBI Securities.
He noted that the momentum indicators continue to support the bullish setup, with the daily RSI remains in bullish territory, signaling sustained buying interest, and the MACD remaining positive as it trades above both its zero line and signal line, while the histogram reflecting strong bullish momentum.
“Going ahead, the zone of 58,000 – 58,200 will act as an immediate hurdle for the Bank Nifty index. A sustainable move above 58,200 could trigger a sharp upside rally towards 59,000, followed by 59,600. On the downside, the 57,100 – 57,000 zone is expected to act as a key support level for the index,” said Shah.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that the Bank Nifty index continues to hold above all its key moving averages, indicating that the broader uptrend remains intact despite the minor pullback.
“On the weekly chart, the index formed a classic doji after gaining 1.53% during the week, reflecting indecision at current levels following the strong multi-week rally from the recent swing low. The index also remains well above its previous swing high of 57,457 on the daily chart. The RSI is at 68, easing marginally from its recent overbought zone while still reflecting strong momentum,” said Mehra.
According to him, the 58,700 level, which coincides with the 127.8% Fibonacci extension, remains the next upside target, while a decisive close above 58,000 could open the door for a move toward this level.
“On the downside, 57,400, followed by 57,000, remains the key support zone for the Bank Nifty index,” 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.
