The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday tracking mixed global market cues.
The trends on Gift Nifty also indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 25,738 level, a discount of nearly 53 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market ended lower, with the benchmark Nifty 50 holding above 25,700 level.
The Sensex dropped 250.48 points, or 0.30%, to close at 83,627.69, while the Nifty 50 settled 57.95 points, or 0.22%, lower at 25,732.30.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex respected the support zone around 83,100 – 83,200, which acted as a firm cushion on session lows.
“Immediate resistance for Sensex is now placed near 84,100 – 84,200, where earlier upside attempts were capped before the late-day weakness. With the failure to sustain early gains and a close below major psychological levels, the structure currently favours a neutral-to-cautious stance, with selective accumulation on dips as long as the support zone holds intact,” said Hitesh Tailor, Technical Research Analyst, Choice Broking.
Nifty OI Data
Derivatives data shows heavy call writing at the 26,000 strike along with strong put writing at the 25,700 strike, suggesting a well-defined near-term trading range. As long as the Nifty sustains above the 25,600 level, a selective buy-on-dips strategy may be considered, with strict stop-losses placed at 25,500 to effectively manage downside risk, said Tailor.
Nifty 50 Prediction
Nifty 50 formed a red candle with a long upper shadow, reflecting rejection near the 25,900 resistance zone, where heavy Call OI supply is present.
“A long bear candle was formed on the daily chart with a long lower shadow. Technically, this market action indicates presence of crucial overhead resistance around 25,900 – 26,000 levels. But the buying has started to emerge from near the lower supports. This is a positive signal and hints at the possibility of eventual breakout in the short term,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying short-term trend of Nifty 50 remains positive, and the formation of higher bottom reversal pattern on intraday chart (60 min) indicates that the market could move up from here and surpass the hurdle of 25,900 – 26,000 levels in the next few sessions. Immediate support is placed at 25,600 levels.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities noted that the Nifty 50 faces a crucial hurdle at the 50-day EMA zone of 25,890 – 25,920.
“A sustained move above 25,920 could open the door for a sharp upside rally, with potential targets at 26,100 and beyond in the near term. On the downside, immediate support is placed around the 100-day EMA zone of 25,630 – 25,600, which will be a key level for traders to watch,” said Shah.
Bank Nifty Prediction
Bank Nifty index ended 128.30 points, or 0.22%, higher at 59,578.80 on Tuesday, forming a hammer candle on the daily chart, indicating a firm rebound from the lower end of the recent range following the recent decline.
“On the hourly chart, the 59,300 – 59,100 zone remains an important support area, aligning closely with the 23.6% Fibonacci retracement. As long as Bank Nifty holds above this band, the downside trend is likely to remain contained. On the upside, the 59,800 – 59,900 zone continues to cap recovery attempts,” said Om Mehra, Technical Research Analyst, SAMCO Securities.
According to him, a decisive move beyond this zone would be required to signal a return of upward traction. Until then, the Bank Nifty index is likely to remain range-bound rather than witness aggressive upside participation.
Ponmudi R, CEO of Enrich Money said that the price action toward the close reflected consolidation near a key resistance zone, indicating a pause after the rebound.
“A decisive breakout and sustained close above 59,750 – 59,800 is required to trigger fresh upside momentum towards 60,000 – 60,500. Failure to clear this band could result in renewed selling pressure toward lower supports at 59,300 – 59,000. Overall, directional clarity hinges on a breakout above the stated resistance,” said Ponmudi R.
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.
