The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday, amid high crude oil prices and persistent geopolitical tensions, despite upbeat global markets.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,109 level, a discount of nearly 72 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market extended losses for the second consecutive session, with the benchmark Nifty 50 closing below 24,200 level.
The Sensex dropped 238.41 points, or 0.31%, to close at 77,470.11, while the Nifty 50 settled 50.80 points, or 0.21%, lower at 24,187.70.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex continued to form indecisive candlestick patterns, suggesting that the current range could break in either direction.
“Sensex is currently facing resistance near higher levels, while profit booking and external uncertainties are limiting fresh upside momentum. Immediate support is placed in the 77,100 – 77,200 zone, while resistance is seen around the 77,800 – 77,900 region,” said Sachin Gupta, VP – Technical Research, Choice Equity Broking.
He believes a sustained move above resistance could revive bullish momentum, whereas a breach below support may trigger further consolidation in the short term.
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in said that the immediate support for Sensex is placed around 77,300 – 77,100 levels, while resistance is seen near 77,700 – 77,900.
“A decisive breakout above the resistance zone would reinforce the prevailing positive trend,” said Arora.
Nifty Options Data
On the derivatives front, India VIX declined 2.93% to 12.60, signalling subdued volatility and indicating that traders continue to avoid aggressive directional positioning.
“Option chain data shows maximum Put Open Interest (OI) at the 24,200 strike, followed by 24,000, reinforcing a strong support base. Meanwhile, maximum Call OI is concentrated at the 24,200 strike, followed by 24,500, highlighting a significant equilibrium zone where both buyers and sellers are actively defending their positions, making this level crucial for the index’s next directional move,” said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.
Overall, the technical and derivatives setup continues to favour a range-bound trading strategy, he added.
Nifty 50 Prediction
Nifty 50 index formed a small-bodied candle on the daily chart with shadows on both sides, indicating indecision and a lack of clear directional bias at current levels.
“Technically, this market action signals a range bound action with weak bias. The lows of 24,135 have been tested twice in the last couple of sessions indicating an emergence of minor buying from the lows, which is also coincided by the support of 10-day EMA,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying short-term trend of Nifty 50 remains choppy with weak bias, while as long as the crucial support of 24,000 holds, there is a possibility of bounce in the market towards 24,400 – 24,500 levels in the near term.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities noted that over the past 25 trading sessions, Nifty 50 has continued to oscillate within the broader range of 24,530 – 23,785, and the prolonged consolidation has led to the flattening of key moving averages, reflecting the absence of a strong trend.
Momentum indicators also remain subdued, suggesting that the market is currently lacking directional strength.
“Going forward, the 24,270 – 24,300 zone remains the immediate hurdle for Nifty. A sustained move above this resistance band could trigger an extension of the ongoing pullback towards the 24,450 level in the short term. On the downside, the 20-day EMA region of 24,100 – 24,050 is expected to provide immediate support,” said Shah.
Bank Nifty Prediction
Bank Nifty index ended 109.65 points, or 0.19%, lower at 57,835.35 on Tuesday, forming a Gravestone Doji candle on the daily chart, indicating rejection from higher levels and reflecting a cautious undertone among market participants.
“Bank Nifty witnessed selling pressure near its resistance zone, keeping the index in a broad 57,300 – 58,500 consolidation range. The index continues to trade above its medium- and long-term moving averages, suggesting the broader trend remains positive, although the lack of follow-through buying indicates near-term indecision. Immediate support is placed in the 57,500 – 57,300 zone, while resistance is seen around 58,500,” said Vatsal Bhuva, Technical Analyst at LKP Securities.
The RSI remains flat near the neutral zone, reflecting weakening momentum. Until a decisive breakout or breakdown occurs, he advises traders to adopt a buy-on-dips near support and book profits near resistance strategy.
Bajaj Broking Research highlighted that the doji candle with a long upper shadow highlighted profit booking at higher levels as Bank Nifty index continues to consolidate around the 58,000 levels.
“The Bank Nifty index in the last 6 weeks is seen consolidating in the range of 58,700 – 56,500. Going ahead, only a move above the June high of 58,700 would confirm a breakout from the ongoing consolidation and could trigger the next leg of the rally towards 59,300 and eventually 60,000 levels in the coming weeks,” said Bajaj Broking Research.
However, failure to do so will signal extension of the last six weeks consolidation, it 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.
