The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to see a tepid opening on Wednesday, tracking weak cues from global markets.
The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading around 24,688 level, a discount of nearly 20 points from the Nifty futures’ previous close.
Investors will focus on the Reserve Bank of India’s (RBI) monetary policy decision later today. In the August RBI policy, Governor Sanjay Malhotra-led MPC is widely expected to hold repo rates unchanged.
On Tuesday, the domestic equity market ended lower, with the benchmark Nifty 50 closing below 24,700 level.
The Sensex dropped 308.47 points, or 0.38%, to close at 80,710.25, while the Nifty 50 settled 73.20 points, or 0.30%, lower at 24,649.55.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex is currently exhibiting non-directional activity, with traders possibly waiting for either side to break out.
“For day traders, the level of 81,000 will act as important resistance zones. Above these levels, a pullback could continue up to 81,500 – 81,600. On the downside, 80,500 – 80,300 will serve as key support zones. Below these levels, Sensex could slip further to 80,000 – 79,700,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Given the current market texture of non-directional movement, he believes level-based trading would be the ideal strategy for day traders.
Nifty OI Data
In the options segment, the highest Nifty Call open interest (OI) is seen at the 24,800 and 25,000 strikes — signaling key resistance levels. Meanwhile, the highest Put OI lies at the 24,600 strike, suggesting it to be an important support zone.
“The combined technical and derivatives setup suggests that as long as key support levels hold, there is a potential for upward continuation. Traders are advised to remain cautiously optimistic, use dips to accumulate quality names, and manage risk with appropriate stop-loss strategies,” said Mandar Bhojane, Senior Technical & Derivative Analyst – Research at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 shifted into a range bound action in the mid part and showed volatility towards the end, forming a high wave doji candlestick pattern, indicating both indecision and volatility in the market.
“A reasonable negative candle was formed on the daily chart with minor lower shadow, which indicates erosion of some of the gains of Monday. After a one day bounce back from near the crucial support of 24,500 levels, Nifty 50 is expected to revisit the said support in the short term,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the near-term down trend of Nifty 50 remains intact and the market is expected to slide down towards the 24,500 – 24,400 levels in the next few sessions.
“However, today’s RBI’s mid quarter policy outcome is expected to show clear directions for the market. Immediate resistance is placed at 24,800 levels,” Shetti said.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities said that the Nifty 50 has been moving in a narrow range and formed the NR3 pattern on the daily chart.
“Nifty 50 index has been holding on to its 100 EMA support, which is placed at 24,596, since the last three sessions. The daily RSI has been hovering around the 40 mark while the ADX, a key trend strength indicator, has been moving up quietly, settling marginally above the 25 mark, indicating early signs of momentum shifting in the favor of bears. Post the narrow range pattern formation, the price likely experiences a significant move in either direction, as these patterns indicate periods of low volatility and consolidation,” said Shah.
Key support for Nifty 50 lies at 24,500 – 24,550; breach of this zone could drag the index towards 24,350, while immediate resistance is seen at 25,000 – 25,050, he added.
VLA Ambala, Co-Founder of Stock Market Today noted that the Nifty 50 formed a high wave doji candlestick pattern, indicating both indecision and volatility in the market.
“We can expect Nifty 50 to gain support between 24,600 and 24,520, and meet resistance near 24,940 and 24,950 in today’s trading session,” Ambala said.
Bank Nifty Prediction
Bank Nifty index fell 259.10 points, or 0.47%, to end at 55,360.25 on Tuesday, forming a red candle on the daily chart.
“Bank Nifty breached the 75-Day Exponential Moving Average (75-DEMA), placed around 55,470, and formed a red candle on the daily chart, suggesting weakness. On the downside, 55,150 – 55,000 will act as support, while on the upside, the 21-DEMA is placed near 56,310 will serve as immediate resistance,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd.
Hence, he advises traders to closely watch these levels for potential trading opportunities.
Mandar Bhojane highlighted that the Bank Nifty index is still trading below its recent range breakout zone, indicating lack of momentum.
“If the Bank Nifty index remains below 55,115, it may drift further toward 54,900, where the 100 EMA is placed. On the other hand, 56,000 will act as a crucial resistance level — a decisive close above this could spark fresh buying interest,” Bhojane 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.
