The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday, tracking positive cues from global markets.
The trends on Gift Nifty also indicate a strong start for the Indian benchmark index. The Gift Nifty was trading around 24,619 level, a premium of nearly 64 points from the Nifty futures’ previous close.
On Tuesday, the equity market resumed its downward trajectory and ended lower.
The Sensex declined 368.49 points, or 0.46%, to close at 80,235.59, while the Nifty 50 settled 97.65 points, or 0.40%, lower at 24,487.40.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex faced resistance near 81,000 and reversed sharply.
“We are of the view that the current market texture is non-directional; hence, level-based trading would be the ideal strategy for day traders. On the higher side, 80,500 would act as an immediate resistance zone. Above this level, Sensex could bounce back up to 81,000 – 81,200. On the lower side, below 80,000, selling pressure is likely to accelerate. Below this level, Sensex could retest the levels of 79,800 – 79,500,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Nifty OI Data
On the derivatives front, the highest Call Open Interest (OI) for Nifty is at the 24,500 strike, followed by 24,600 and 24,700, indicating these levels could act as immediate resistance. On the Put side, the highest OI is also at the 24,500 strike, followed by 24,400, highlighting strong support zones.
This OI setup suggests that the 24,400–24,600 range will be crucial for Nifty’s near-term movement, and a breakout on either side could dictate the next directional trend, said Hardik Matalia, Derivative Analyst – Research at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 formed an inverted hammer candle on the daily chart, indicating selling pressure at higher levels.
“A small red candle was formed on the daily chart with a long upper shadow. Technically, this market action indicates a lack of strong upside momentum to surpass the overhead hurdle. The bulls may hold the ground as long as the base of 24,300 is protected,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the short term uptrend that resumed after a sharp upmove of Monday remains intact and expects buying to emerge from near the supports of 24,300 – 24,400 levels in the coming sessions. Hence, one may expect Nifty 50 to retest the crucial hurdle of around 24,700 in the short term.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking Ltd. said that the Nifty 50 index formed a bearish candle with a long upper shadow on the daily chart, highlighting selling pressure at higher zones.
“For any meaningful pullback, it is crucial for the Nifty 50 index to reclaim 24,500, which could then open the door for a retest of 24,700. Overall, we expect the Nifty to remain range-bound between 24,330 (support) and 24,700 (resistance),” Jain said.
VLA Ambala, Co-Founder of Stock Market Today advises traders to continue with the sell-on-rise strategy, and expects Nifty 50 to find support between 24,410, 24,305, and 24,240 and meet resistance near 24,580, 24,650, and 24,730 in today’s trading session.
Bank Nifty Prediction
Bank Nifty index declined 467.05 points, or 0.84%, to close at 55,043.70 on Tuesday, forming an Inside Bar candlestick pattern on the daily chart, reflecting indecision in the market.
“Bank Nifty formed a bearish candle in the daily chart and remains positioned below the 50-SMA, 20-SMA, and 9-EMA, indicating sustained short-term weakness. The 100-SMA is placed around the 55,000 mark, and a decisive slip below this level could accelerate the downside momentum and invite further selling pressure,” said Om Mehra, Technical Research Analyst, SAMCO Securities.
On the hourly chart, the Bank Nifty index maintains a clear pattern of lower lows and lower highs. The broader support levels are now layered at 54,700, followed by 54,450, which could act as the next cushion if the weakness persists, he added.
“On the upside, until the Bank Nifty index closes back above 55,650, rallies are likely to remain short-lived, with any recovery attempts expected to face firm resistance near this pivotal zone,” Mehra said.
Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates Ltd. highlighted that on the downside, the 100-DEMA, placed near 54,950, is acting as strong support.
“As long as Bank Nifty holds above this level, a short-term pullback remains possible. On the upside, the 34- DEMA hurdle near 56,050 will act as major resistance. Break below 54,950 could open the doors for 54,500 levels,” Yedve said.
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.
