The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower Tuesday, 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 24,974 level, a discount of nearly 22 points from the Nifty futures’ previous close.
On Monday, the domestic equity market ended sharply higher, with the benchmark Nifty 50 closing above the 24,900 level.
The Sensex surged 677.55 points, or 0.84%, to close at 81,796.15, while the Nifty 50 settled 227.90 points, or 0.92%, higher at 24,946.50.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Nifty OI Data
Nifty Open Interest (OI) on the call side is concentrated at the 25,000 and 25,200 strike prices, suggesting these levels as key resistance zones. On the put side, significant OI build-up is seen at the 24,900 and 24,800 strike prices, highlighting these as important support levels, said Hardik Matalia, Derivative Analyst at Choice Broking.
Nifty 50 Prediction
Nifty 50 witnessed an excellent follow-through upmove action on June 16 and closed the day higher by 227 points.
“A long bull candle was formed on the daily chart that has surpassed the hurdle of the recent opening downside gap area at 24,825 levels. Nifty 50 is placed again into a broader high low range of 24,500 – 25,100 levels and is currently moving up from the lower range towards the upper range area,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He believes the underlying trend of Nifty 50 continues to be positive, and after the formation of short-term bottom reversal at 24,473 levels on Friday, Nifty 50 is expected to move towards the next hurdle of 25,100 – 25,200 levels in the next few sessions. Immediate support is placed at 24,800.
Dr. Praveen Dwarakanath, Vice President of Hedged.in said that Nifty 50 covered the gap between 24,900 and 24,700 in yesterday’s rally, forming a bullish candle; however, the index continues to trade in the range of 24,500 and 25,200.
“The options writers’ data also suggests a range-bound move in the index for now. Nifty 50 index is bouncing from the support at the 24,500 level towards its resistance at the 25,200 level. The stochastics continued to fall even though the index rallied upside, indicating the upside momentum is limited to its resistance level. The ADX DI+ and the ADX DI- lines are moving crisscrossing each other, indicating no clear trend in the index. One can look to sell the index near its resistance and buy near its support until one of these levels is taken off,” said Dwarakanath.
According to VLA Ambala, Co-Founder of Stock Market Today, Nifty 50 formed a bullish Marubozu candlestick pattern at the daily time frame and concluded above last week’s closing price.
“This development offered a boost to the market sentiments. For this week, Monday’s lower range of 24,600 to 24,700 will be a key range to watch. As long as the price sentiment remains bullish above this range, bulls will try to protect the range. The Nifty index’s RSI was at 55 at the daily time frame, which indicated a moderate buying range for traders and investors. While the broader trend remains bullish, any dips in this range could present buying opportunities,” Ambala said.
Reviewing these aspects, Ambala expects Nifty 50 to gather support between 24,900 and 24,750 and meet resistance near 25,180 and 25,250.
Bank Nifty Prediction
Bank Nifty index gained 417.55 points, or 0.75%, to close at 55,944.90 on Monday, snapping its four consecutive sessions of losses.
“Bank Nifty formed a bull candle with a higher high and higher low and in the process filled its Friday’s gap down area and 20 days EMA. In the coming session a move above 56,000 levels will open further upside towards 56,600 and 57,000 levels. Failure to do so will lead to consolidation in the range of 56,000 – 55,000 amid stock specific action,” Bajaj Broking Research said.
On the downside only a breach below 55,000 levels will open downside towards the key support area of 54,500 – 55,000 in the coming sessions, the brokerage firm added.
Om Mehra, Technical Research Analyst, SAMCO Securities noted that the Bank Nifty index formed a bullish candle on the daily chart, rebounding from the recent swing low of 55,149.30.
“Bank Nifty index has reclaimed the 20-day SMA and closed above the 38.2% Fibonacci retracement level at 55,840, drawn from the recent high to the low. The index is currently hovering just below the 56,100 mark, which coincides with the 50% retracement level, a key resistance zone in the short term. Sustained strength above this zone could open the door toward 56,640, the 78.6% retracement level,” Mehra said.
On the downside, the 20-day EMA and the 23.6% retracement at 55,475 now serve as immediate support levels. The RSI has recovered to 55, from the lower levels. However, the MACD remains in negative territory with a slight narrowing of the histogram, he added.
“Overall, a decisive close above 56,200 would strengthen bullish sentiment, while any dip towards 55,800 – 55,720 could offer a favourable buy-on-dip opportunity,” Mehra 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.
