The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to remain volatile on Friday as investors remain cautious over the fragile US-Iran peace deal.
The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around 23,887 level, a discount of nearly 109 points from the Nifty futures’ previous close.
The BSE and NSE were closed for a stock market holiday on Thursday due to Bakri Id.
On Wednesday, the Indian stock market extended losses for the second consecutive session, with the benchmark Nifty 50 holding above 23,900 level.
The Sensex fell 141.90 points, or 0.19%, to close at 75,867.80, while the Nifty 50 settled 6.55 points, or 0.03%, lower at 23,907.15.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a small candle on the daily charts and showed non-directional activity on intraday charts, indicating indecisiveness between the bulls and the bears.
“We are of the view that the short-term market texture is positive, but a fresh uptrend rally is possible only after the dismissal of 76,200. Post a 76,200 breakout, Sensex could move up to 76,800 – 77,000. On the flip side, below the 20-day SMA (Simple Moving Average) or 75,700, selling pressure is likely to accelerate,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Below this level, he believes Sensex could retest the 50-day SMA or the 75,200 – 75,000 levels.
Nifty Options Data
In the derivatives segment, significant call writing was observed at the 24,000 and 24,200 strikes, while put writing was concentrated at the 23,900 and 23,800 strikes, indicating a broader consolidation range with immediate resistance placed near the 24,000 zone.
Nifty 50 Prediction
Nifty 50 index formed a gravestone doji-like candlestick pattern on the daily timeframe, indicating indecisiveness at higher levels after the recent recovery.
“Technically, the 23,800 region remains an important immediate support zone, and a decisive break below this area could extend weakness toward the 23,600 – 23,500 levels. On the upside, the 24,000 – 24,100 range continues to act as a strong resistance band, and only a sustained move above this zone could revive bullish momentum toward the 24,200 levels,” said Ponmudi R, CEO, Enrich Money.
According to him, the near-term structure for Nifty 50 remains cautious and range-bound with a mildly negative bias, while a decisive breakout above 24,000 will be essential to improve sentiment and strengthen recovery momentum.
Mayank Jain, Market Analyst, Share.Market by PhonePe noted that the 23,800 level remains a vital short-term base for Nifty 50 that corresponds closely with the 20-day EMA.
“If Nifty 50 breaks and closes below 23,700, it will weaken the immediate bullish momentum and open the doors for a deeper slide toward the institutional put wall at 23,500. While the major structural resistance sits in the 24,400 – 24,500 zone, the immediate hurdle for the bulls is the recent high range of 24,000 – 24,100,” said Jain.
A decisive daily close above 24,100 is required to confirm a trend reversal and unlock further upside, he added.
Bank Nifty Prediction
Bank Nifty ended 239.05 points, or 0.43%, lower at 54,853.85 on Wednesday, forming a small-bodied bearish candle with a noticeable upper wick on the daily chart, indicating weakness at higher levels and an inability to sustain gains.
“Bank Nifty also failed to hold above its 50-day EMA and ended the session below it. Additionally, the RSI has witnessed a mild correction, further indicating the absence of strong momentum. Going ahead, the immediate resistance for Bank Nifty is placed in the 55,200 – 55,300 zone. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 55,700, followed by 56,100 in the short term,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
On the downside, according to him, the immediate support for Bank Nifty is placed in the 54,400 – 54,300 zone.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that the Bank Nifty index continues to hold above the middle Bollinger Band, keeping the short-term recovery setup intact. The RSI is placed near 51, sustaining above the neutral zone. The MACD line remains in positive territory.
“On the hourly chart, the Bank Nifty index is consolidating in the 54,600 – 55,500 range. However, an unfilled gap zone is visible near 54,300, which may act as a potential target if the falling trendline is breached. On the upside, a sustained close above 55,200 would be required to open the path towards the 55,400 – 55,600 zone,” 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.
