The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a cautious note Tuesday amid US President Donald Trump’s higher tariffs threat, despite upbeat global market cues.
The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 24,757 level, a discount of nearly 37 points from the Nifty futures’ previous close.
On Monday, the domestic equity market ended higher, with the Nifty 50 closing above 24,700 level.
The Sensex rallied 418.81 points, or 0.52%, to close at 81,018.72, while the Nifty 50 settled 157.40 points, or 0.64%, higher at 24,722.75.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex has formed a reversal pattern, and has formed a bullish candle on the daily charts, which is largely positive.
“We are of the view that, in the short term, the market’s texture is weak but oversold; hence, a sharp technical bounce back is not ruled out from the current levels. For day traders, 80,600 and 80,500 would act as key support zones for Sensex, while 81,500 – 81,800 could be the key resistance areas for the bulls,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
However, he believes, below 80,500, the sentiment could change, and below this level, traders may prefer to exit their long positions.
According to Mayank Jain, Market Analyst, Share.Market, immediate resistance for Sensex is placed in the 81,500 – 81,700 zone, and a breakout above this range could pave the way for a move towards 82,200.
“On the downside, support is expected between 80,700 – 80,500, with a breakdown potentially pulling the index lower towards the 80,000 – 79,800 zone,” Jain said.
Nifty OI Data
In the derivatives segment, the highest Nifty Call open interest was observed at the 24,800 and 24,950 strike prices, signaling key resistance zones. On the other hand, the highest Put open interest stood at the 24,600 strike, indicating strong support.
This positioning suggests that a firm close above 24,800 would be crucial to reviving bullish momentum and improving overall market sentiment, said Hardik Matalia, Derivative Analyst – Research at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 witnessed a smart bounce back on August 4 and closed the day higher by 157 points, but still trades below its key short-term moving averages.
“A reasonable positive candle was formed on the daily chart that placed beside the long bear candle of Friday. Technically, this market action indicates a pullback rally in the bearish market. Previously, few such bounces towards the lower highs have encountered with strong hurdles and Nifty 50 declined sharply,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
The negative chart pattern like lower tops and bottoms remains intact on the daily chart. After the formation of a new lower bottom on Monday at 24,535, Nifty 50 is expected to form a new lower top around 24,850 – 24,900 levels in the short term, which could be a sell on rise opportunity. Immediate support is placed at 24,550, Shetti added.
Mayank Jain sees immediate resistance for Nifty 50 in the 24,800 – 25,000 range, with a sustained breakout required to extend gains towards 25,250 – 25,350.
“Support is placed around 24,600 – 24,500. A decisive break below this zone could lead to further downside towards the 24,000 mark,” Jain said.
VLA Ambala, Co-Founder of Stock Market Today said that the Nifty 50 formed a bullish Engulfing and bullish Marubozu candlestick pattern on the daily timeframe. She expects Nifty 50 to find support between 24,670 and 24,550, and face resistance near 24,950 and 25,040.
Bank Nifty Prediction
Bank Nifty index ended flat at 55,619.35 on Monday, showing indecision in the market.
“Bank Nifty index continues to exhibit weakness, trading below its 20-day and 50-day EMAs, both of which are trending downward. The daily RSI at 38 reflects the ongoing lack of momentum. Key support is at 55,350 – 55,400; a break below which could open doors to 54,750 – 54,850. Immediate resistance is at 56,150 – 56,200,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Overall, while Monday’s bounce offers some relief, the underlying structure suggests caution. Sustainability of the recovery will depend on follow-through buying and cues from global markets, he added.
Hardik Matalia noted that the Bank Nifty showed signs of uncertainty, closing flat near the previous day’s close, reflecting indecision among market participants.
“Key support levels are placed at 55,500, followed by 55,400 and 55,000. Holding above these levels could allow for further upside, while resistance is expected in the 56,250 – 56,600 zone. A decisive breakout above this range may trigger a rally toward the psychological 57,000 mark,” said Matalia.
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.
