The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday amid short-covering after a sharp selloff in the previous session as investors remain cautious over the renewed US-Iran war tensions and rising crude oil prices.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 23,980 level, a premium of nearly 68 points from the Nifty futures’ previous close.
On Wednesday, the Indian stock market ended sharply lower, amid escalation in the US-Iran war and rising crude oil prices, with the benchmark Nifty 50 slipping below 23,900 level.
The Sensex crashed 1,677.12 points, or 2.15%, to close at 76,503.60, while the Nifty 50 settled 516.65 points, or 2.12%, lower at 23,882.05.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a long bearish candle on daily charts, indicating further weakness from the current levels.
“We are of the view that the short-term texture of the market has changed to negative from positive, and for day traders, selling on rallies would be the ideal strategy. For day traders, 77,000 and 77,100 would act as immediate resistance levels for the bulls. As long as Sensex is trading below these levels, weak sentiment is likely to continue on the downside,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
He believes Sensex could retest the level of the 50-day SMA (Simple Moving Average), around 76,000, and further downward movement may also continue, which could drag the index to 75,800.
“On the flip side, above 77,100, the sentiment could change. If Sensex moves above this level, a pullback could continue till 77,400 – 77,500. The current market texture is volatile; hence, level-based trading would be the ideal strategy for day traders,” said Chouhan.
Nifty Options Data
In the derivatives segment, significant Call Open Interest (OI) was concentrated at the 24,000 and 24,200 strikes, indicating immediate resistance, while notable Put Open Interest was observed at the 24,700 and 24,800 strikes, suggesting positional support at higher levels despite the sharp decline.
Nifty 50 Prediction
Nifty 50 index formed a strong bearish candlestick on the daily chart, confirming rejection from higher levels and signalling weakness in the near term.
“A long bear candle was formed on the daily chart, which has surpassed the last five days’ up move in one session, which indicates a faster downside retracement. The short-term trend of Nifty 50 has turned down sharply, while the medium to long term trend remains positive,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, further weakness down to the immediate support of 23,600 could offer base for the market and the Nifty 50 could bounce from the lows. Immediate resistance is placed at 24,100.
Mayank Jain, market analyst, Share.Market by PhonePe noted that the support for Nifty 50 lies at 23,500 – 23,400 levels.
“A slide below the psychological 24,000 mark may shift near-term momentum completely to the bears. A failure to hold the immediate 23,400 support could potentially open the doors for a deeper correction toward 23,000. Immediate overhead resistance may now stand at 24,000. Beyond that, the 24,250 – 24,350 corridor is likely to act as the primary supply zone,” said Jain.
Bank Nifty Prediction
Bank Nifty index tanked 1,458.10 points, or 2.51%, to close at 56,742.60 on Wednesday, forming a sizable bearish candle on the daily chart and slipping below its 20-day EMA for the first time since June 8.
“The RSI, which had previously taken support around the 60 mark on two occasions, broke below the level, indicating strengthening bearish momentum. Additionally, the MACD has crossed below its signal line, suggesting that momentum is shifting in favour of the bears,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
According to him, the immediate support for Bank Nifty is placed in the 56,300 – 56200 zone, and any sustainable move below this zone could result in the index extending its weakness towards 55,800, followed by 55,400 in the short term.
“On the upside, the immediate resistance for Bank Nifty is placed in the 57,100 – 57,200 zone,” said Shah.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that the Bank Nifty index has slipped below both its 20-day and 200-day SMAs in a single session. However, the 50-day SMA continues to provide support just below the current levels.
“Bank Nifty index is also testing the Donchian Channel midline, placed at 56,700, which now becomes a key level for the short-term direction. The RSI has fallen sharply to 49 after sustaining above 60 in recent sessions. The MACD histogram has turned negative; however, the fast line remains above the slow line,” said Mehra.
On the downside, 56,200, followed by 55,800, are the key support levels. On the upside, 57,200, followed by 57,500, remains the immediate resistance, he added.
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.
