The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat on Wednesday, tracking mixed cues from global markets and technology stocks-led selloff in US markets.
The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading around 23,868 level, a premium of nearly 15 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market crashed amid a fresh wave of selloff across segments, with both the benchmark indices slipping over 1% each.
The Sensex slumped 893.39 points, or 1.16%, to close at 76,200.68, while the Nifty 50 settled 278.80 points, or 1.16%, lower at 23,824.10.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a long bearish candle on daily charts and a lower top formation on intraday charts, indicating further weakness from the current levels.
“For Sensex, the pivotal level would be 76,500. This will act as a trend decider level. Below this, the index could slip till 75,500 – 75,300. On the flip side, if Sensex moves above 76,500, it could bounce back to 76,800 – 77,000,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in noted that Sensex has breached its immediate support levels and is now trading near a critical support zone of 76,000 – 75,800.
“On the upside, 76,700 – 77,000 is likely to act as an important resistance area. Any recovery beyond these levels could improve market sentiment,” said Arora.
Nifty Options Data
In the derivatives segment, significant call writing was observed at the 23,900 and 24,000 strikes, while put writing was concentrated at the 23,600 and 23,500 levels, suggesting immediate resistance near the 23,900 – 24,000 zone and support around the lower strike levels.
Nifty 50 Prediction
Nifty 50 formed a bearish candlestick pattern on the daily timeframe, indicating strong selling pressure and a loss of bullish momentum.
“A long bear candle was formed on the daily chart after the consolidation movement of a few sessions. This market action indicates downside breakout of range movement. After a stellar rally in the early mid part of the June month, the current weakness in Nifty 50 is expected to be a healthy downward correction of an uptrend,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying short-term trend seems to have turned down, but the overall near-term uptrend remains intact.
“Nifty 50 is expected to bounce from the lower support of around 23,600 in the short term. Immediate resistance is placed at 24,000 levels,” said Shetti.
Om Mehra, Technical Research Analyst, SAMCO Securities noted that the Nifty 50 has fallen below the 23.6% Fibonacci retracement level at 23,920, with the close now placed near the 38.2% retracement level, which remains the immediate zone to watch. However, the index is on the edge of the middle Bollinger band.
“The fall has made the Nifty 50 index vulnerable, and the downside gap-filling area, which has acted as a short-term support zone, will be crucial in the coming sessions. The RSI has eased to 52, slipping from its recent highs but still holding above the neutral mark. India VIX surged 8.57% to close at 13.94, marking a notable spike after cooling off in recent sessions,” said Mehra.
He added that the support for Nifty 50 is placed around 23,650, followed by 23,550, while resistance is seen at 24,000.
Bank Nifty Prediction
Bank Nifty index ended 751.85 points, or 1.30%, lower at 57,183.75 on Tuesday, forming a sizeable bearish candle on the daily chart, indicating selling pressure at higher levels.
“Despite the correction, the Bank Nifty index continues to trade above its short and long-term moving averages, suggesting that the broader trend remains intact. However, momentum indicators point towards a pause in the ongoing uptrend. The daily RSI is currently placed around the 61 mark and is on the verge of slipping below its 9-day average, indicating a potential loss of momentum in the near term,” said Sudeep Shah – Head of Technical and Derivatives Research at SBI Securities.
Going forward, he believes that the immediate support for the Bank Nifty index is placed in the 56,800 – 56,700 zone, and a breakdown below the 56,700 level could lead to further weakness, with the 20-day EMA, currently positioned at 56,173 acting as the next crucial support.
“On the upside, the 57,500 – 57,600 zone is likely to act as a key resistance,” Shah added.
Bajaj Broking Research believes that the overall structure is positive, and any dips should be used to accumulate quality banking stocks in a staggered manner.
“Key support for Bank Nifty index is placed at 56,000 levels being the confluence of the 38.2% retracement of the entire pullback 53,027 – 57,954 and the recent breakout area. On the higher side, key resistance is placed around 58,300 and 59,250 levels in the coming sessions being the measuring implication of the recent range breakout and the 138.2% external retracement of the previous decline 57,456 – 52,783,” said the brokerage firm.
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.
