The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday, tracking upbeat global market cues, amid hopes of a peace deal between US and Iran.
The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 24,322 level, a premium of nearly 216 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market ended lower, with the Nifty 50 slipping below 24,100 level.
The Sensex dropped 251.61 points, or 0.33%, to close at 77,017.79, while the Nifty 50 settled 86.50 points, or 0.36%, lower at 24,032.80.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex took support near 76,500 and registered some recovery. Currently, the market is witnessing non-directional activity.
“For day traders, 76,500 would act as an immediate support zone, while 77,200 or the 50-day SMA (Simple Moving Average) would be the key resistance area for the bulls. A successful breakout above 77,200 could push Sensex up to 77,700 – 78,000, while below 76,500, the market could retest the levels of 76,200 – 76,000,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Nifty Options Data
In the derivatives segment, significant 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, suggesting a defined trading range with a mild directional bias.
Nifty 50 Prediction
Nifty 50 formed a Dragonfly Doji candle on the daily chart, indicating the emergence of buying interest at lower levels.
“A small red candle was formed on the daily cart with long lower shadow. Technically this market action indicates broader sideways range movement around 24,300 – 23,800 levels. Having bounced back from the lows on Tuesday, Nifty 50 could bounce back towards 24,300 levels in the short term,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, a range breakout beyond 24,300 and 23,800 could confirm fresh directions for the market.
Nilesh Jain, VP- Head of Technical and Derivatives Research at Centrum Finverse noted that the Nifty 50 index took support near its 21-DMA around 23,950 levels and managed to close above the 24,000 mark.
“However, it encountered resistance near its 50-DMA at 24,080 and formed a Doji candle on the daily chart, indicating indecision. A decisive move above 24,100 could pave the way for further upside towards 24,300, while immediate support is seen at 23,900 levels. The broader trend currently appears sideways, though the setup remains constructive for accumulation with a potential pullback on the upside,” said Jain.
Bank Nifty Prediction
Bank Nifty index ended 331.45 points, or 0.60%, lower at 54,547.05 on Tuesday, forming a high wave candle with a lower high and a lower low, signaling consolidation with corrective bias.
“The ratio chart of Bank Nifty relative to the Nifty index is indicating a pattern of lower highs and lower lows, reflecting sustained relative weakness. Additionally, the index is currently trading below its key moving averages, which further underscores the prevailing bearish undertone,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Going ahead, he believes the 54,100 – 54,000 zone is expected to act as a crucial support, while a sustained break below 54,000 may trigger further downside, potentially leading to a correction towards the 53,400 level in the short term.
“On the upside, the 55,000 – 55,100 zone will serve as an immediate hurdle for Bank Nifty index. A decisive move above 55,100 could result in a pullback rally towards the 55,600 mark,” said Shah.
Bajaj Broking Research expects the Bank Nifty index to extend consolidation in the broad range of 54,000 – 56,500 amid stock specific action as we progress through the quarterly earning session of the banking stocks.
“Within the consolidation a move above of 55,000 levels being the trendline resistance joining recent highs will signal extension of the pullback towards the 56,500 levels. While a breach below the key support area of 54,000 will signal extension of the decline towards 52,500 levels being the gap area of the April 8,” said the brokerage firm.
According to Bajaj Broking Research, the Bank Nifty index has immediate support around 54,000 levels being the confluence of the recent low and 38.2% retracement of the last 3 weeks pullback (49,955 – 57,456).
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.
