The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday, tracking weakness in global markets.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 25,183 level, a discount of nearly 83 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market indices ended with decent gains, snapping their four-day losing streak.
The Sensex rose 317.45 points, or 0.39%, to close at 82,570.91, while the Nifty 50 settled 113.50 points, or 0.45%, higher at 25,195.80.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a reversal formation on both intraday and daily charts, which is largely positive.
“For short-term traders, the key support zones for Sensex is 82,300. Above this level, the pullback formation is likely to continue. On the higher side, the 20-day SMA at 82,900 would act as a crucial hurdle for the bulls. If Sensex successfully surpasses the 20-day SMA, it could move up to 83,300 – 83,500,” said Shrikant Chouhan, Head – Equity Research, Kotak Securities.
On the flip side, if the level falls below 82,300, the index could retest the 50-day SMA at 82,000. Further downside may also continue, potentially dragging Sensex down to 81,600 – 81,500, he added.
Nifty OI Data
In the derivatives segment, the highest Call open interest (OI) for Nifty 50 is seen at the 25,300 and 25,500 strikes, hinting at resistance near those levels. On the Put side, the highest open interest is at the 25,000 strike, reinforcing it as a strong support area. This combination of technical and derivative signals points towards a potential upside if key levels are held, said Mandar Bhojane, Senior Technical & Derivative Analyst – Research at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 rebounded slightly on July 15 amidst range bound movement and closed the day higher by 113 points, forming a big bullish candle on the daily chart, indicating strength.
“A reasonable positive candle was formed on the daily chart with minor upper shadow. Technically, this market action indicates an attempt of bounce back from near the lower supports of around 25,000 levels. Further sustainable upside from here could confirm the short-term bottom reversal pattern for the market,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the bounce back of Tuesday could be a cheering factor for bulls to make a comeback, and a sustainable move above the immediate resistance of 25,350 could open more upside in the near term. Immediate support is placed at 25,000 levels.
Dr. Praveen Dwarakanath, Vice President of Hedged.in, noted that the options writer’s data show more puts writing at the 25,200 level of the present week’s expiry, indicating a possible move on the upside.
“The momentum indicators on the smaller time frame have bounced from the oversold region, indicating strength in the Nifty 50. The index is inching towards the immediate resistance at the 25,300 level, a break of which can take the index to 25,600 – 25,800 levels in the coming days,” said Dwarakanath.
VLA Ambala, Co-Founder of Stock Market Today believes a ‘sell on the rise’ strategy could be effective in today’s session if the Nifty 50 opens above 25,350.
“However, a dip-buying opportunity may arise if the index opens at 25,000 or below. Currently, the overall market sentiment is bullish, so investors should be active to encash potential gains. We can expect the Nifty 50 to gain support between 25,000 and 25,100 and meet resistance near 25,280 and 25,360 in today’s session,” Ambala said.
Bank Nifty Prediction
Bank Nifty index gained 241.30 points, or 0.43%, to close at 57,006.65 on Tuesday, forming a bull candle with a higher high and higher low, signalling buying demand from the lower band of the last 8 sessions range.
“Bank Nifty index took support near an upward sloping trendline and staged a notable pullback, reflecting renewed buying interest at lower levels. Importantly, the index has also moved above its 20-day EMA, a short-term bullish signal that indicates improving momentum within the banking space. Talking about crucial support, the zone of 56,800 – 56,700 will act as immediate support for the index. While on the upside, the zone of 57,200 – 57,300 will act as a crucial hurdle for the index,” said Sudeep Shah, Head – Technical and Derivatives Research, SBI Securities.
Any sustainable move above the level of 57,300 will lead to a sharp upside rally upto the level of 57,700, followed by 58,200 in the short term, he added.
Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates Ltd. highlighted that the Bank Nifty formed a bullish engulfing candle on the daily chart, indicating strength.
“The short-term hurdle for Bank Nifty is placed near 57,360, while trend line support is located around 56,500. As long as the index holds above 56,500 levels, traders are advised to adopt a buy-on-dips strategy,” said Yedve.
Bajaj Broking Research expects the Bank Nifty index to extend the consolidation in the 56,500 – 57,600 range, and only a move above 57,600 will signal extended rally towards 58,500 levels in the coming weeks.
“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 consolidation should be viewed as buying opportunities,” said Bajaj Broking Research.
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.
