The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday, tracking weakness in global markets, amid escalating US-Iran tensions and rising crude oil prices.
The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around 24225 level, a discount of nearly 234 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market ended lower, snapping its four-day gaining streak amid profit booking at higher levels.
The Sensex declined 104.35 points, or 0.13%, to close at 78,180.72, while the Nifty 50 settled 31.65 points, or 0.13%, lower at 24,398.70.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a bearish candle on the daily charts, indicating the possibility of further weakness from the current levels.
“For day traders, 77,700 will act as a crucial support zone. Above these levels, Sensex could retest 78,400 – 78,600. On the flip side, if the index falls below 77,700, it could witness a quick intraday dip towards 77,400 – 77,100,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Nifty Options Data
In the derivatives segment, significant Call Open Interest (OI) was concentrated at the 24,400 and 24,500 strikes, while notable Put Open Interest was at the 24,400 and 24,300 strikes, indicating immediate support near lower levels.
“Overall, the Nifty 50 index continues to maintain a cautiously positive bias as long as it holds above the 24,200 – 24,250 support zone, while sustained buying above 24,500 will be crucial for the next leg of the rally,” said Sachin Gupta, VP – Technical Research at Choice Broking.
Nifty 50 Prediction
Nifty 50 index formed a bearish candlestick on the daily chart, reflecting selling pressure near the resistance zone after the recent recovery.
“A reasonable negative candle was formed on the daily chart at the highs with minor upper shadow. Technically, this market action indicates profit booking from the highs amidst range bound action. Though, Nifty 50 fell slightly on Tuesday, the overall market breadth was weak with decline seen in broad market indices,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying short-term trend remains choppy with weak bias, and having reached the key resistance around 24,500 levels, there is a possibility of some more consolidation or minor dip in the next 1-2 sessions before showing bounce from the lows. Immediate support is placed at 24,200 levels.
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in noted that the Nifty 50 continues to hold above the 24,350 mark, with immediate support placed around 24,300 – 24,250, followed by 24,150. On the upside, resistance is seen near 24,500 – 24,550. A sustained move above this zone could trigger fresh buying momentum.
“The day’s decline appears to be a healthy pause after the recent rally rather than a change in trend. As long as benchmark indices hold above their key support levels, the overall outlook remains constructive. Traders may continue to follow a ‘buy-on-dips’ strategy while maintaining disciplined risk management,” said Arora.
Bank Nifty Prediction
Bank Nifty index ended 90.80 points, or 0.16%, lower at 58,200.70 on Tuesday, forming a bearish candle on a daily scale.
“Bank Nifty index continues to trade comfortably above its short-term as well as long-term moving averages, both of which are trending higher, reflecting a strong underlying bullish structure. Momentum indicators are also supporting the positive outlook,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Going forward, he believes the 58,700 – 58,800 zone is likely to act as a key resistance area for Bank Nifty, as the previous swing high is placed in this region, while a decisive breakout above 58,800 could pave the way for a sharp upward move towards 59,400, followed by the psychologically important 60,000 mark in the near term.
“On the downside, immediate support is placed in the 57,800 – 57,700 zone. As long as the Bank Nifty index holds above this support band, the broader bullish trend is expected to remain intact, and any corrective decline towards these levels may offer buying opportunities,” said Shah.
Bajaj Broking Research highlighted that a decisive move above the recent swing high of 58,700 will strengthen the bullish setup and can pave the way for an advance towards 59,200 and 60,000 in the coming weeks, which coincide with the 138.2% and 150% external retracement of the previous decline from 57,456 to 52,783.
Failure to move above 58,700 will signal extension of the last 8 sessions consolidation in the range of 57,000 – 58,700, it added.
“On the downside, the Bank Nifty index has witnessed buying interest around the 57,000 – 57,500 zone, with the lows of the last three weeks placed in this range, making it a crucial short-term support area. As long as this zone remains intact, the broader positive structure is expected to continue,” said the brokerage firm.
According to Bajaj Broking Research, the overall trend remains constructive, and the ongoing consolidation should be viewed as an opportunity to accumulate quality banking stocks in a staggered manner for the next leg of the up move.
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.
