The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Tuesday, tracking mixed global market cues, amid cautiousness over the escalating US-Iran war in the Middle East.
The trends on Gift Nifty also indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 24,147 level, a discount of nearly 112 points from the Nifty futures’ previous close.
On Monday, the Indian stock market ended lower, with the benchmark Nifty 50 closing below 24,300 level.
The Sensex dropped 442.93 points, or 0.57%, to close at 77,708.52, while the Nifty 50 settled 95.80 points, or 0.39%, lower at 24,238.50.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a recovery candle after opening with a significant gap-down, indicating buying interest emerging at lower levels.
“From a technical perspective, Sensex’s trading range has narrowed, but a decisive breakout is still awaited. The key levels to watch remain 76,800 on the downside and 78,300 on the upside. As long as these levels remain intact on a closing basis, stock-specific action is likely to dominate,” said Shrikant Chouhan, Head of Equity Research, Kotak Securities.
He believes a close below 76,800 could open the doors for a decline towards 76,200, whereas a sustained move above 78,300 may pave the way for a retest of 78,700.
“The preferred strategy is to reduce weak long positions in the 78,300 – 78,600 zone, while remaining selective in accumulating quality stocks on declines,” added Chouhan.
Nifty Options Data
In the derivatives segment, the PCR is at 1.09, reflecting a mildly positive undertone.
“Strong Put Open Interest (OI) is concentrated at the 24,000 – 24,200 strikes, while Call Open Interest remains highest at the 24,300 – 24,500 strikes, suggesting immediate support at 24,100 – 24,150 and resistance at 24,300 – 24,350. A sustained move above the resistance zone could strengthen the near-term bullish outlook,” said Sachin Gupta, VP – Technical Research at Choice Broking.
Nifty 50 Prediction
Nifty 50 formed a small-bodied candle on the daily chart and closed within the previous session’s range, reflecting continued indecision.
“A small green candle was formed on the daily chart, that closed beside the long bull candle of Friday. Technically, this market action indicates an inside day type candle formation which is reflecting a range bound movement in the market with weak bias. The negative global sentiment has not impacted much on our markets so far,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the near-term uptrend of Nifty 50 is still intact, and as long as it holds 24,000 levels during its ongoing consolidation, the index is expected to bounce back towards 24,350 – 24,400 levels again in the near term. Immediate supports to be watched is at 24,000 levels.
Mayank Jain, Market Analyst, Share.Market by PhonePe said that the support for Nifty 50 lies at 23,850 – 23,950 levels, which remains the primary structural demand zone on the technical chart.
“Monday’s quick resilience above the 24,100 mark indicates that buyers are still defending lower cushions ahead of this major support block. Technical resistance is seen at 24,500 – 24,600. This upper band stands as the primary resistance target,” said Jain.
Reclaiming intraday momentum above 24,350 will be the first step for the bulls before they can attempt a breakout toward the 24,500 – 24,600 supply zone, he added.
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in noted that the Nifty 50 index slipped below the 24,300 mark but continues to trade above an important support zone.
“Immediate support is placed around 24,200 – 24,150, followed by 24,000. On the upside, resistance is seen near 24,350 – 24,450. A sustained move above this zone could revive bullish momentum and open the door for fresh buying interest,” said Arora.
Bank Nifty Prediction
Bank Nifty index ended 576.40 points, or 0.98%, lower at 57,945.00 on Monday, forming a small-body bullish candle with wicks on either side, highlighting intraday indecision.
“Despite the choppy Intraday movement, Bank Nifty managed to hold above its 20-day EMA, keeping its short-term bullish trend intact. Going ahead, the immediate resistance for Bank Nifty is placed in the 58,300 – 58,400 zone. Any sustainable move above this zone could result in the index extending its pullback towards 58,800, followed by 59,200 in the short term,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
On the downside, he added that the immediate support for Bank Nifty is placed in the 57,600 – 57,500 zone.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that the Bank Nifty index continues to hold above all its key moving averages despite the day’s pullback.
“The RSI has eased to 54 from 58 in the previous session, indicating that momentum has softened following the decline. The immediate resistance remains at 58,500, followed by 58,710. On the downside, 57,500 acts as the first support, with 57,300 serving as a stronger cushion should the pullback further deepens,” 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.
