The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday, following gains in global markets, even as sentiment remains cautious over the US-Iran war. Market participants will watch out for the meeting between US President Donald Trump and his Chinese counterpart Xi Jinping.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 23,527 level, a premium of nearly 65 points from the Nifty futures’ previous close.
On Wednesday, the Indian stock market snapped its four-day losing streak and ended marginally higher, with the benchmark Nifty 50 closing above 23,400 level.
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Nifty 50 and Sensex are expected to open higher on May 14, following gains in global markets. However, sentiment remains cautious due to the US-Iran situation and upcoming US-China meeting.
Immediate resistance for Nifty 50 is seen at 23,600, with a crucial band between 23,500 – 23,600. Immediate support is near 23,350, with a strong support zone around 23,250. A major support zone is at 23,000.
Sensex is trading below short-term averages and holding a correction continuation formation, suggesting potential further weakness. A pullback rally might occur if Sensex trades above 75,000.
The immediate support for Bank Nifty is in the 53,100 – 53,000 zone, with potential downside towards 52,600 and 52,300. The immediate resistance is placed in the 53,800 – 53,900 zone.
Sentiment is cautious due to global market pressures, including weakness in technology stocks and rising oil prices. Renewed geopolitical tensions surrounding Iran and developments from the Trump-Xi meeting also contribute to market nervousness.
The Sensex gained 49.74 points, or 0.07%, to close at 74,608.98, while the Nifty 50 settled 33.05 points, or 0.14%, higher at 23,412.60.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex failed to close above the 75,000 resistance mark, which is largely negative. Additionally, it is currently trading comfortably below short-term averages and holding a correction continuation formation on intraday charts, which supports further weakness from the current levels.
“We believe that the short-term market outlook remains bearish. However, a pullback rally could occur if Sensex trades above 75,000. Above this level, 75,500 – 75,700 would be the next resistance zones for traders. On the flip side, 74,500 would act as an immediate support zone for day traders,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Below this level, he believes, Sensex could retest 74,200, and further downside may continue, potentially dragging the index to 74,000.
“The current market texture is volatile and non-directional; hence, level-based trading would be the ideal strategy for day traders,” he added.
Nifty Options Data
In the derivatives segment, notable call writing was observed at the 23,500 and 23,600 strikes, while put writing was concentrated at the 23,400 and 23,300 levels, indicating a defined trading range with a cautious undertone.
Nifty 50 Prediction
Nifty 50 formed a small green candle on the daily chart with a long upper wick and minor lower shadow, indicating hesitation and selling pressure at higher levels.
“Technically, this market action echoes ongoing volatility in the market. Nifty 50 is nearing a cluster support around 23,100 – 23,150 levels (61.8% Fibonacci retracement and the lower end of previous opening up gap of 8th April),” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Hence, according to him, there is a possibility of a bounce back from near the support in the short term. Immediate resistance is placed at 23,600.
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in noted that the Nifty 50 closed around the 23,400 zone, indicating cautious optimism despite profit booking at higher levels.
“Nifty 50 index is currently taking support near 23,350, which remains an important immediate base for the market. A further decline towards 23,250 could act as the next strong support zone in case of any extended weakness. On the upside, 23,500 – 23,600 remains a crucial resistance band, where some selling pressure may continue to emerge,” said Arora.
Mayank Jain, Market Analyst, Share.Market, said that Nifty 50 failed to cross the critical 23,500 resistance level, suggesting that bears are still selling into every minor rally.
“The 23,000 mark is a major support zone. If Nifty 50 falls below this on a closing basis, we could see a slide toward even lower levels. For the market to show any real strength, the Nifty 50 index must decisively cross the 24,000 mark. Until then, the market stance remains sideways to bearish,” said Jain.
Bank Nifty Prediction
Bank Nifty index ended 99.05 points, or 0.18%, lower at 53,456.15 on Wednesday, forming a small-bodied bearish candle on the daily chart with wicks on both sides, reflecting indecision in the near term.
“Bank Nifty index remains positioned in the lagging quadrant of the Relative Rotational Graph (RRG), indicating weak relative strength and momentum. Going ahead, the immediate support for Bank Nifty is placed in the 53,100 – 53,000 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 52,600, followed by 52,300 in the short term,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
On the upside, he believes the immediate resistance for the Bank Nifty index is placed in the 53,800 – 53,900 zone.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that the RSI has declined to the 39 level, while the MACD remains in negative territory.
“On the downside, the 52,780 – 52,600 zone for Nifty Bank remains the next support area. On the upside, the 54,000 – 54,300 zone remains the immediate hurdle. Unless Nifty Bank reclaims this zone on a closing basis, the near-term outlook is likely to remain under pressure,” 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.
