The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to see a tepid opening on Wednesday, tracking mixed 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 24,825 level, a discount of nearly 13 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity market witnessed fag-end short-covering and ended higher, with the Nifty 50 closing above 24,800 level.
The Sensex rallied 446.93 points, or 0.55%, to close at 81,337.95, while the Nifty 50 settled 140.20 points, or 0.57%, higher at 24,821.10.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sesex saw an intraday reversal formation after a long correction, coupled with a bullish candle on the daily charts, indicating a further uptrend from the current levels.
“Technically, the chart reveals a resistance zone between 82,500 and 82,700. The price action remains constrained within this range, and a breakout above resistance could lead to fresh highs. However, if Sensex fails to sustain above 80,400 – 80,500, we may see selling pressure resume. The bullish close and strong intraday recovery signal growing confidence, possibly fueled by earnings optimism and short-term institutional buying,” said Om Ghawalkar, Market Analyst, Share.Market.
According to him, if Sensex breaks and holds above 82,000, it could aim for the all-time high of 86,000. On the downside, 80,000 remains critical as it also acts like a psychological support.
Nifty OI Data
On the options front, the highest Call open interest (OI) for Nifty is seen at the 25,000 and 25,200 strike prices, highlighting potential resistance. On the Put side, the highest open interest is concentrated at the 24,800 strike, suggesting strong support. Together, the technical setup and derivative data signal a potential upside continuation as long as key support levels are held, said Mandar Bhojane, Senior Technical & Derivative Analyst – Research at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 rebounded after three sessions of decline and ended higher on July 29, forming a bullish ‘Engulfing’ candlestick pattern on the daily chart.
“Although the rebound provided a temporary pause to the decline, the Nifty 50 continues to trade below the 50-Day SMA (25,050) and the 20-day EMA (25,180), indicating ongoing short-term weakness. The RSI has edged up to 42, recovering modestly from oversold territory, but remains well below its signal line and under the neutral 50 mark. The daily Super trend is capping barriers within the broader trend,” said Om Mehra, Technical Research Analyst, SAMCO Securities.
According to him, the immediate resistance is now seen at 25,000, followed by 25,100, which aligns with the short-term moving averages and the median of the recent decline.
“These levels must be crossed decisively to consider any reversal. On the downside, 24,470 remains the key support level; a breakdown below this may extend further weakness,” Mehra said.
Om Ghawalkar noted that the rebound in Nifty 50 follows the formation of a three black crows pattern, a well-known bearish continuation signal in technical analysis, which had indicated increasing selling pressure.
“Nifty 50 found strong support in the 24,550 to 24,650 range, where it formed a bullish Marubozu candlestick. This type of candlestick often suggests aggressive buying and indicates that bulls may be re-entering the market with conviction. We can see that a short-term reversal may be in the making, particularly if the Nifty 50 can open and sustain above the 24,850 mark in today’s trading session,” said Ghawalkar.
A move above this level could signal the start of a renewed uptrend and encourage further participation from traders and investors, he added.
VLA Ambala, Co-Founder of Stock Market Today highlighted that the Nifty 50 index found support at the 20-week EMA, however, the outlook for swing trading remains ‘sell on rise’, as the Nifty’s RSI stands at 52 on the weekly timeframe.
“This suggests that any upward spike can be seen as a selling opportunity from a trading perspective. We can expect Nifty 50 to gain support between 24,600 and 24,520, and meet resistance near 24,850 and 25,080 in today’s session,” Ambala said.
Bank Nifty Prediction
Bank Nifty index ended 137.10 points, or 0.24%, higher at 56,222.00, closing above its 50-day EMA.
“Bank Nifty index formed a bullish engulfing candlestick pattern on the daily chart and managed to close above the 56,200 mark, indicating emerging strength. If the index manages to hold yesterday’s low of 55,843, a pullback rally could extend towards 56,700 and 57,300 levels,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates Ltd.
He advises traders to follow a buy-on-dips strategy in Bank Nifty as long as it holds above 55,843 levels.
Sudeep Shah, Head – Technical and Derivatives Research, SBI Securities believes the support zone of 55,800 – 55,700 for Bank Nifty will be crucial to watch, as holding above this band is essential to maintain the current short-term positive bias.
“On the flip side the resistance zone of 56,500 – 56,600 is expected to pose a significant challenge. A decisive and sustainable breakout above the 56,600 level could pave the way for an extended pullback rally with immediate upside targets at 57,000 followed by 57,500 in the near term,” Shah 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.
