The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Monday, tracking a rally in global markets.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,135 level, a premium of nearly 212 points from the Nifty futures’ previous close.
On Friday, the Indian stock market ended sharply lower, with the benchmark Nifty 50 slipping bellow 23,900 level.
The Sensex crashed 999.79 points, or 1.29%, to close at 76,664.21, while the Nifty 50 settled 275.10 points, or 1.14%, lower at 23,897.95.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a bearish candle on weekly charts, and a reversal formation has appeared on daily charts, which supports further weakness from the current levels.
“We are of the view that 77,000 would act as a crucial reference point for traders. Below this level, the correction wave is likely to continue, with Sensex potentially slipping to the 20-day SMA or 76,000. Further downside could also continue, dragging the index to the 75,700 – 75,500 range,” said Amol Athawale, VP Technical Research, Kotak Securities.
On the upside, above 77,000, Sensex could bounce back up to 78,000 – 78,200, he added.
Nifty 50 Prediction
Nifty 50 index formed a bearish candlestick pattern on weekly chart, signaling profit booking at higher levels.
“A long bear candle was formed on the daily chart, which signals strengthening of downside momentum in the market. The immediate support of 10-and 20-day EMA has been broken on the downside and the support of previous opening up gap of15th April has been filled completely and no reasonable bounce back was seen,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying short-term trend of Nifty 50 continues to be weak, and further declines from here could drag Nifty 50 down to the next support of 23,500 in the short term. Immediate resistance is placed at 24,100 levels.
Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse Ltd. noted that the immediate support for Nifty 50 is now placed at the 21-DMA around 23,580.
“On the retracement front, the 38.2% Fibonacci level of the recent upmove is positioned at 23,690, which could be tested in the upcoming expiry week. Meanwhile, the volatility index surged nearly 15% during the week to close around 20, which remains a concern. A cooldown in volatility would be a positive sign for the bulls,” said Jain.
Bank Nifty Prediction
Bank Nifty index ended 215.25 points, or 0.38%, lower at 56,089.75 on Friday, forming a small bearish candlestick pattern on weekly chart, signalling consolidation with corrective bias after recent strong up move.
“Going ahead, the immediate support for Bank Nifty is placed in the 55,500 – 55,400 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 55,000, followed by 54,500 in the short term. On the upside, the zone of 56,500 – 56,600 zone is likely to act as an immediate resistance,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Dr. Ravi Singh, Chief Research Officer from Master Capital Services Ltd. highlighted that the Bank Nifty index has slipped below its 55 day EMA, indicating emerging short term pressure, however, it continues to hold above the 21day EMA, suggesting that the broader structure remains relatively resilient and the intensity of selling is limited.
“As long as the Bank Nifty index sustains above the 54,600 – 55,000 zone, a ‘Buy on Dips’ approach remains favorable. On the upside, 57,500 continues to act as a crucial resistance, a sustained breakout above this level could pave the way for an extended rally towards 58,000 – 58,500 levels,” said Singh.
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.
