The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a muted note on Monday, tracking weakness in global markets, amid escalating US-Iran war and rising crude oil prices.
The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 24,305 level, a discount of nearly 16 points from the Nifty futures’ previous close.
On Friday, the Indian stock market ended sharply higher, with the benchmark Nifty 50 closing above 24,300 level
The Sensex rallied 964.58 points, or 1.25%, to close at 78,151.45, while the Nifty 50 settled 261.55 points, or 1.09%, higher at 24,334.30.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a bullish candle on the weekly charts and is also maintaining a higher-bottom formation on the daily charts, supporting the possibility of a further uptrend from the current levels.
“We believe that, for positional traders, the 77,000 level (20-day SMA) and 77,600 will act as crucial trend-deciding levels. As long as Sensex trades above these levels, the bullish sentiment is likely to continue. On the upside, the rally could extend towards the 78,500 – 79,400 range,” said Amol Athawale, VP Technical Research, Kotak Securities.
On the flip side, if Sensex falls below 77,000, he believes the sentiment could turn negative, and advises traders may prefer to exit their long trading positions.
Nifty 50 Prediction
Nifty 50 formed a strong bullish candle on the daily chart and closed above its 100-day EMA. For the week, the index rose 0.51%.
“A long bull candle was formed on the daily chart on Friday that indicates that the market is now on the verge of surpassing the crucial hurdles like previous opening down gap and 200-day EMA around 24,350 – 24,400 levels. This is a positive indication,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying short-term trend of Nifty 50 seems to have turned up, and a sustainable move above 24,400 levels could open the next upside target of around 24,600 – 24,700 levels in the short term. Immediate support is placed at 24.200.
Dr. Ravi Singh, Chief Research Officer from Master Capital Services Ltd. noted that the Nifty 50 index continues to trade comfortably above its 21 day and 55 day EMAs, while consistently respecting these moving averages, reflecting a strong underlying trend.
“As per the breakout projection, the Nifty 50 index now has the potential to advance towards the 24,600 mark in the near term. On the downside, 24,000 and 23,800 remain key support levels. As long as Nifty 50 sustains above these levels, the overall outlook remains positive, and a buy on dips strategy continues to be favoured,” said Singh.
Bank Nifty Prediction
Bank Nifty index jumped 939.15 points, or, 1.63%, to close at 58,521.40 on Friday, forming a strong bullish candle that pushed the index decisively above the descending trendline. For the week, the index gained 0.82%, holding firmly above its 20-day EMA.
“Going ahead, the immediate resistance for Bank Nifty is placed in the 58,700 – 58,800 zone, which coincides with its previous swing high zone. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 59,200, followed by 59,600 in the short term,” said Sudeep Shah – Head of Technical and Derivatives Research at SBI Securities.
On the downside, the immediate support for the Bank Nifty index is placed in the 58,100 – 58,000 zone, he added.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that the Bank Nifty index continues to trade above all its key moving averages, and the RSI has moved up to 60 from 57 in the previous session, reflecting improving momentum.
“The immediate resistance for Bank Nifty is placed at 58,750. A decisive close above this level could extend the uptrend towards the 1.618 Fibonacci extension at 60,000. On the downside, 58,000 now acts as a strong support level,” 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.
