The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat on Tuesday, following mixed global market cues.
The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading around 25,173 level, a premium of 5.5 points from the Nifty futures’ previous close.
On Monday, the Indian stock market ended lower, with the benchmark indices extending losses for the fourth consecutive session.
The Sensex dropped 247.01 points, or 0.30%, to close at 82,253.46, while the Nifty 50 settled 67.55 points, or 0.27%, lower at 25,082.30.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex experienced selling pressure at higher levels, and following a long correction, it eventually took a halt near the 82,000 mark.
“We believe that Sensex has completed one leg of correction, and the 50-day SMA (Simple Moving Average) at 82,000 is likely to act as a key support zone for traders. Above this level, a technical bounce back up to the 20-day SMA, or approximately 82,500 – 82,800, could be expected. On the flip side, below the 50-day SMA, or 82,000, selling pressure is likely to accelerate. In that scenario, Sensex could see levels around 81,600 – 81,500,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Nifty OI Data
On the derivatives front, Nifty open interest (OI) data shows the highest Call OI for Nifty 50 at the 25,200 strike, followed by 25,300, suggesting potential resistance at higher levels. On the Put side, the highest OI is concentrated at the 25,000 strike, indicating strong immediate support. This OI setup highlights the 25,000 – 25,300 range as a key zone for Nifty’s next directional move, said Hardik Matalia, Derivative Analyst – Research at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 formed a red candle on the daily chart and remained below the 21-Day Exponential Moving Average (21-DEMA), which is placed near 25,243.
“A reasonable negative candle was formed on the daily chart with minor lower shadow. Technically, this market action indicates continuation of downward correction in the market with slower momentum. The larger degree bullish pattern like higher tops and bottoms is intact on the daily chart and present weakness could be in line with the new higher bottom formation. Still there is no confirmation of any higher bottom reversal at the lows,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the short-term trend of Nifty 50 continues to be weak and there is a possibility of some more consolidation with range-bound action in the coming session.
“Crucial lower supports can be watched around 25,000 – 24,900, and there is a probability of upside bounce from the lower supports. Immediate resistance to be watched at 25,200,” said Shetti.
Dr. Praveen Dwarakanath, Vice President of Hedged.in noted that the Nifty 50 made a quick recovery from its low of 25,000 during the day, indicating strong support at the 25,000 level.
“The options writer’s data also shows more call writing, while the put writing at the 25,000 level for the present week is giving strong support at the 25,000 level. The momentum indicators on the smaller time frame bounced from the oversold region during the day, indicating support at the day’s low. The index took support at the lower band of the supertrend and bounced from the day’s low, which is also suggesting a move upside from the current levels,” said Dwarakanath.
VLA Ambala, Co-Founder of Stock Market Today believes that the Nifty 50 is still in just a pullback zone and is likely to trade within the 25,400 to 24,700 range this entire week.
“In this circumstance, I recommend following a sell-on-rise strategy till the Nifty 50 index tests its major immediate support at 24,700. Considering these aspects, we can expect the Nifty 50 to gain support between 24,930 and 24,850, and meet resistance near 25,170 in today’s intraday trading session,” Ambala said.
Bank Nifty Prediction
Bank Nifty index ended on a flat note on Monday, gaining just 10.65 points, or 0.02% at 56,765.35, and formed a Doji candlestick pattern on the daily chart.
“Bank Nifty formed a doji candle with long shadows in either direction signaling consolidation amid stock specific action. The index on expected lines in the last seven sessions is seen consolidating in the range 56,400 – 57,600. We expect the index to extend the same and only a move below 56,400 will signal extension of corrective decline towards the key support area of 56,000 – 55,500,” Bajaj Broking Research said.
Key short-term term support is placed at 56,000 – 55,500 region, representing a confluence of the 50-day EMA and the key retracement level. The broader trend remains positive, and the current dips should be viewed as buying opportunities, the brokerage firm added.
According to Sudeep Shah, Head – Technical and Derivatives Research, SBI Securities, the zone of 56,550 – 56,500 is likely to act as immediate support for the Bank Nifty index.
“A breakdown below this zone could trigger further downside pressure in the near term. On the upside, the index faces a strong resistance in the zone of 57,000 – 57,100, which will act as a crucial hurdle. A sustained move above this zone will be essential to reignite bullish momentum and pave the way for higher levels,” said Shah.
Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates Ltd said that the Bank Nifty formed a doji candle near the lower trend line support of the rising wedge pattern on the daily chart, indicating buying interest near support.
“The trend line support is currently placed near 56,500 levels. If the index manages to hold above 56,500, a pullback towards 57,000 – 57,200 could be possible. Thus, short term traders are advised to buy near support and sell near resistance mentioned above,” said Yedve.
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.
