The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Tuesday, tracking mixed cues from global markets.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,046 level, a discount of nearly 74 points from the Nifty futures’ previous close.
On Monday, the Indian stock market ended sharply higher, snapping its three-day losing run, with the Nifty 50 closing above 24,000 level.
The Sensex surged 639.42 points, or 0.83%, to close at 77,303.63, while the Nifty 50 settled 194.75 points, or 0.81%, higher at 24,092.70.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a bullish candle on daily charts and a reversal formation on intraday charts, indicating that a pullback formation is likely to continue in the near future.
“For day traders, 77,000 and 76,700 would act as crucial support zones. As long as Sensex is trading above these levels, the bullish sentiment is likely to continue. On the higher side, the index could move up to 77,700. Further upside may also persist, potentially lifting the index up to 78,000,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the flip side, he believes below 76,700, the uptrend would become vulnerable, and under such circumstances, traders may prefer to exit their long positions.
Nifty Options Data
In the derivatives segment, notable call writing was observed at the 24,200 and 24,300 strikes, while put writing was concentrated at the 24,000 and 23,900 levels, indicating a defined trading range for the near term.
Nifty 50 Prediction
Nifty 50 index formed a bullish candle that effectively ‘engulfed’ some of the previous session’s weakness, suggesting that buyers are active near the 23,800 structural support.
“A long bull candle was formed on the daily chart that placed within the high low range of Friday’s long red candle. This is indicating a formation of inside day type candle pattern which signals possible comeback of bulls after a reasonable downward correction. Bullish pattern like higher tops and bottoms has started to form on the daily chart and the Friday’s swing low of 23.813 could now be considered as a new higher bottom of the pattern,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the short-term trend of Nifty 50 seems to have turned up after a downward correction.
“The next upside levels to be watched around 24,500 – 24,600 in the next few sessions. Immediate support is placed at 23,800,” Shetti added.
Mayank Jain, Market Analyst, Share.Market noted that the 24,000 level is the immediate psychological support, while a break below 23,800 would be a major warning sign, potentially dragging the Nifty 50 index toward 23,500.
“The immediate resistance is at 24,500. A sustained move above this level is required to shift the bias toward a neutral-to-bullish trend,” said Jain.
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in believes the broader trend continues to remain bullish, and any short-term consolidation or minor pullbacks towards support levels should be viewed as potential buying opportunities, as long as the key supports are respected.
He added that the 23,900 level now acts as a crucial base for the ongoing uptrend, and on the upside, 24,200 – 24,300 remains a key resistance band, where some supply and profit booking may emerge.
Bank Nifty Prediction
Bank Nifty index ended 174.55 points, or 0.31%, higher at 56,264.30 on Monday, forming a small-bodied candle with shadows on both sides, indicating lack of clear direction.
“The Bank Nifty index is hovering near its 50-day EMA. Looking ahead, the 200-day EMA placed in the 56,600 – 56,700 zone will act as a key resistance. A sustained move above 56,700 could propel the Bank Nifty index towards the 57,200 level,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
On the downside, he added that the 20-day EMA in the 55,700 – 55,600 range is likely to provide immediate support.
Bajaj Broking Research said that the Bank Nifty index is witnessing consolidation in the broad range of 54,500 – 57,500 amid stock specific action.
“Within the consolidation a move above last two sessions almost identical high of 56,475 will open further upside towards the 57,000 and 57,500 levels in the coming sessions. On the lower side a breach below last week low of 55,750 will open downside towards the 54,500 levels,” said the brokerage firm.
From a short-term perspective, support is placed in the range of 54,500 – 54,000 zone, being the confluence of the recent low and 38.2% retracement of the last 3 weeks pullback (49,955 – 57,456), 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.
