The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Monday, tracking positive global market cues.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,930 level, a premium of nearly 50 points from the Nifty futures’ previous close.
On Friday, the domestic equity market ended sharply higher, with the Nifty 50 closing above 24,800 level.
The Sensex surged 769.09 points, or 0.95%, to close at 81,721.08, while the Nifty 50 settled 243.45 points, or 0.99%, higher at 24,853.15.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Senex formed a promising reversal formation on daily charts and currently it is comfortably trading above 20 day SMA (Short Term Moving Average) which is largely positive.
“We are of the view that 80,900 and 80,500 would be the key support zones for the short term traders while 82,300 would be the immediate resistance zone for the bulls. A successful breakout above 82.300 could push Sensex up to 82,700 – 83,600. On the other side, below 80,500 the sentiment could change. Below the same, Sensex could slip till 80,300. Further downside may also continue which could drag the index up to 79,700,” said Amol Athawale, VP-Technical Research, Kotak Securities.
Nifty OI Data
Heavy call writing at the Nifty 25,000 and 25,500 strikes signals strong resistance, while strong put writing at 24,500 highlights solid support. This defines a well-balanced trading range between 24,500 – 25,100. Until a breakout occurs on either side, traders should remain cautious and focus on a stock-specific, risk-managed approach, Choice Broking said in a note.
Nifty 50 Prediction
Nifty 50 ended with a gain of 0.99% at 24,853.15 on May 23 and closed 0.67% lower on the weekly basis. The index has formed a small bear candle with a long lower shadow on the weekly chart.
“Nifty 50 held the support of the 21-Day Exponential Moving Average (21-DEMA) and formed a bullish candle on the daily chart, indicating strength. However, the index is still placed below the psychological resistance level of 25,000. A firm breakout above 25,000 could drive the Nifty 50 towards 25,200 – 25,250 levels in the short term,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.
On the downside, 21-DEMA support is placed near 24,480. As long as the index holds above this level, the probability of an upside breakout remains high, he added.
Om Mehra, Technical Research Analyst, SAMCO Securities, noted that the higher high formation on the daily chart remains intact, strengthening the uptrend.
“Nifty 50 continues to oscillate around the 9 and 20 EMA, which have acted as support and resistance in recent sessions. The supports are placed at 24,600 and 24,550, while resistance is capped near 25,080. The advance decline ratio remained positive, signaling healthy market breadth. India VIX settled at 17.16, and a further drop below 17, ideally toward 16 or lower, would help ease volatility and strengthen the bullish outlook. Until then, the index may maintain a neutral to positive stance,” Mehra said.
VLA Ambala, Co-Founder of Stock Market Today, advises mid-term and long-term investors to use the opportunity to buy on dips of 3% to 10%.
“From a technical point of view, Nifty 50 can gain support around 24,750 and 24,660, while resistance can be expected around 24,960 and 25,050,” said Ambala.
Dr. Praveen Dwarakanath, Vice President of Hedged.in said that the Nifty 50 index has an immediate resistance at the 25,200 level and a support at the 24,500 level.
“Nifty 50 index has momentum on the upside, indicating it can be bought at every dip. The index has taken support from its 20-day moving average and bounced from the day’s opening, indicating strength in the index. The Bollinger band shows an expansion, suggesting a possible rally in the index from the current level. The ADX average line is sloping down with the ADX DI- line and the ADX DI+ line is sloping upside, suggesting momentum upside. The stochastics is in the oversold region, indicating bullishness to continue in the index,” said Dwarakanath.
Bank Nifty Prediction
Bank Nifty index gained 456.95 points, or 0.83%, to close at 55,398.25 on Friday, and formed a doji candle with a long lower shadow on the weekly chart, signaling consolidation amid buying demand at lower levels.
“In the coming week, we expect the Bank Nifty index to maintain a positive bias and head higher towards the upper band of the last 4 weeks consolidation placed around 55,800 – 56,000 levels. Overall, we expect the index to extend the last 4 weeks’ consolidation in the broad range of 56,000-53,500. Only a move above 56,000 levels will signal acceleration of the up move,” said Bajaj Broking Research.
In the last 22 sessions, it has retraced just 38.2% of the prior 9-session rally (49,157–56,098), indicating a shallow pullback that suggests underlying strength and potential higher bottom formation.
“Within the consolidation, we believe dips should be used as buying opportunities. Key support at 54,000 – 53,500 being the confluence of key retracement and 20 days EMA,” the brokerage firm added.
Hrishikesh Yedve highlighted that the Bank Nifty index formed a green candle following a hammer candle on the daily chart, indicating strength.
“On the upside, the index is facing resistance near 55,700 levels. A sustained move above this level could lead to a test of new all-time highs. On the downside, 21-DEMA support is placed near 54,630. As long as the index remains above this level, it is likely to continue its bullish momentum,” Yedve 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.
