The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday, tracking weak sentiment in global markets amid escalating US-Iran war in the Middle East.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 23,271 level, a discount of nearly 59 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market ended over half a percent higher, snapping its two-day losing run, with the benchmark Nifty 50 closing above 23,200 level.
The Sensex gained 394.50 points, or 0.54%, to close at 73,918.76, while the Nifty 50 settled 119.10 points, or 0.52%, higher at 23,242.10.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a small candle on daily charts, and a reversal formation on intraday charts was seen near 73,500.
“We are of the view that 73,500 will act as a key support zone for day traders. As long as Sensex trades above this level, a pullback formation is likely to continue, potentially moving towards 74,500 – 74,700 on the higher side,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the flip side, he believes a decline below 73,500 could weaken the uptrend, and advises traders to exit long positions below this level.
Nifty Options Data
In the derivatives segment, significant call writing was observed at the 23,300 and 23,500 strikes, while put writing was concentrated at the 23,200 and 23,000 levels, indicating a broader trading range with support shifting near lower levels.
Nifty 50 Prediction
Nifty 50 index formed a Dragonfly Doji-like candlestick pattern on the daily timeframe, indicating strong buying interest emerging from lower levels.
“A small candle was formed on the daily chart with a long lower shadow. Technically, this market action indicates a formation of a bullish hammer or doji type candle pattern. The last two sessions’ candle formations are like Inverted Hammer on Monday and Hammer / Doji on Tuesday. This is signaling that the market is preparing for an important bottom reversal at the lows,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
The key lower support of 23,150 (previous opening upside gap of 8 April) has been violated on the downside before bouncing back sharply. This is a positive indication, he noted.
According to Shetti, the underlying trend of Nifty 50 has turned positive from near the support levels and more upside is likely in the short term.
“A sustainable move above the hurdle of 23,500 is likely to open broad-based buying in the market. Immediate support is placed at 23,100,” Shetti added.
Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse noted that the Nifty 50 index found strong support around the 23,100 mark and witnessed a sharp rebound from those levels.
“The recovery was primarily led by the banking and financial sectors, which continued to outperform the broader market. On the daily chart, the index formed a Dragonfly Doji, a pattern that is generally considered a bullish reversal signal. As long as the Nifty 50 sustains above the 23,100 level, a follow-through move towards 23,400 is likely, with 23,500 acting as the next immediate resistance,” said Jain.
Meanwhile, the volatility index, INDIAVIX, cooled off by 8% to 15.50, and any further decline in volatility could provide additional comfort to the bulls, he added.
Bank Nifty Prediction
Bank Nifty index rallied 1,130.75 points, or 2.09%, to close at 55,194.50 on Tuesday, and gave a breakout from a Symmetrical Triangle pattern on the daily chart, accompanied by the formation of a sizeable bullish candle, signalling a strong follow-through buying interest.
“Bank Nifty index has reclaimed and moved decisively above its 20-day and 50-day exponential moving averages, further reinforcing the positive momentum. From a momentum perspective, the daily RSI is placed at 55.48 and is trending higher, indicating improving strength and a gradual pickup in bullish momentum,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Considering the favourable technical setup, he expects Bank Nifty to extend its upward trajectory in the near term, with immediate upside targets placed around 55,700, followed by 56,200.
“On the downside, the zone of 54,600 – 54,500 is expected to act as a crucial support band, providing a cushion against any short-term pullbacks,” Shah added.
Bajaj Broking Research highlighted that the Bank Nifty index closed above the 20 and 50 day’s EMA signalling a positive bias in the index. On the daily chart, the index formed a double bottom pattern with identical June and May months’ low and has generated a breakout above the trendline resistance joining highs of April and May, highlighting a trend reversal and positive bias in near short term.
“Immediate resistance for Bank Nifty index is placed at 55,500 – 55,600 levels which is the neckline for double bottom pattern, breakout and close above these levels will signal further up move towards 56,500 levels. Failing to do so will signal consolidation in the broader range of 55,600 – 54,000,” said the brokerage firm.
Immediate support for the Bank Nifty index is placed around 54,000 – 53,800 levels being the current week low.
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.
