The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open flat to positive on Tuesday, 4 August, amid positive global cues.
The Gift Nifty trends also indicated a flat-to-positive start for the Indian benchmark index. The Gift Nifty was trading at around 24,669, a 20-point premium to the Nifty futures’ previous close.
On Monday, the Indian stock market ended higher, with the benchmark Nifty 50 closing below 24,800.
The Sensex jumped 544.39 points, or 0.70%, to close at 78,639.03, while the Nifty 50 settled 390.70 points, or 1.60%, higher at 24,774.30.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Nifty 50 Prediction
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, said the Nifty 50 witnessed a decisive breakout on Monday after opening with a gap-up and closing firmly higher. He noted that the narrow trading range following the gap-up opening indicates a strong breakout above the crucial 24,400-24,500 resistance zone, which is a positive technical signal. Shetti added that the presence of several unfilled upside gaps formed during the past six to seven sessions reflects the strength of the recent recovery from lower levels. He believes the underlying trend remains positive, with the index likely to head towards the 24,800-25,000 zone in the near term, while 24,400 is expected to act as immediate support.
Hitesh Rathi, Technical Analyst – Equity & Derivatives at Angel One, said the 24,450-24,350 zone is likely to attract buying interest on any near-term decline and should serve as the first support band. On the upside, he expects the 25,000-25,150 range to act as the immediate resistance before the index attempts a further move higher. Rathi also noted that while the broader market continues to see strong stock-specific action, the Nifty Midcap index has once again faced selling pressure near its previous record highs, indicating strong overhead supply. Given this backdrop, he advised investors to adopt a wait-and-watch approach rather than take aggressive positions at current levels.
Bank Nifty Prediction
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the Bank Nifty staged a strong recovery after opening gap-up and advancing to an intraday high of 57,853 before profit-booking at higher levels. Following adjustments during the closing auction session, the index settled at 58,248, up 1.72% for the day.
Shah said the immediate resistance for Bank Nifty is placed in the 58,700-58,800 zone. A sustained move above this range could extend the ongoing pullback towards 59,200, followed by 59,500 in the short term. On the downside, he expects the 57,800-57,700 zone to act as immediate support.
Vatsal Bhuva, Technical Analyst at LKP Securities, said the Bank Nifty has given a positive technical breakout after reclaiming both its 20-day and 200-day moving averages on the daily chart, and closed with a bullish candlestick pattern that signals improving market sentiment. He noted that the index has also moved above the key 57,500 resistance level, further strengthening the positive outlook. Bhuva added that the Relative Strength Index (RSI) has witnessed a bullish crossover, indicating strengthening momentum.
Based on the current technical setup, he expects the bullish bias to remain intact and recommends a buy-on-dips strategy. According to him, the 57,450-57,400 zone is likely to act as immediate support, while 58,200 and 58,500 remain the key resistance levels, with the index likely to test the 58,500 mark in the near term.
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.
