The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower amid weak domestic cues on geopolitical tensions between India and Pakistan, while global market cues remain mixed.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,412 level, a discount of nearly 49 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity market ended higher despite rising tensions between India and Pakistan, with the Nifty 50 closing above 24,400 level.
The Sensex rose 105.71 points, or 0.13%, to close at 80,746.78, while the Nifty 50 settled 34.80 points, or 0.14%, higher at 24,414.40.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex gained 0.13% to close at 80,746.78 on Wednesday, amid high volatility.
“We are of the view that the current market texture is non-directional; perhaps traders are waiting for either side breakout. On the higher side, 81,000 would be the immediate breakout level for traders. Above this level, Sensex could move up to 81,300 – 81,500. On the other side, a dismissal of 80,500 could accelerate the selling pressure. Below this level, the index could retest the level of 80,200,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
He believes further downside may also continue, which could drag Sensex down to 80,000 – 79,800.
Nifty 50 Prediction
Nifty 50 showed quick recovery soon after the opening and later shifted into a range bound action with positive bias on May 7, closing above the 24,400 level.
“A reasonable bull candle was formed on the daily chart at the lows, which indicates an emergence of buying interest on the decline. Nifty 50 has been in a broader high low range over the last 9-10 sessions and we observe higher low formations as per daily timeframe chart. The rising wedge type of formation is unfolding in Nifty 50 as per daily timeframe chart,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, a slide below the initial support of 24,200 levels could trigger short term downward correction in the market, however, a decisive move above 24m600 could bring bulls back into action.
Om Mehra, Technical Research Analyst, SAMCO Securities, noted that the Nifty 50 formed a bullish candle with relatively smaller wicks on both ends, reflecting resilience.
“After a negative start, the Nifty 50 index staged a notable recovery and defended the prior swing low of 24,200, suggesting the prevailing trend remains neutral to mildly positive. On the hourly chart, Nifty displayed a rebound from a double bottom pattern, emphasizing the strength. The daily Relative Strength Index (RSI) is steady at 65 levels. Moreover, the MACD on the daily timeframe shows the fast line positioned above the slow line, confirming the continuation of the ongoing pattern,” Mehra said.
The immediate support is seen at 24,300, followed by a stronger base near 24,200. On the upside, a decisive breakout above 24,530 could shift the move toward the 24,650 to 24,750 zone. Until then, the index is likely to oscillate within the defined range before initiating its next directional move, he added.
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd. said that the Nifty 50 formed a big bullish candle on the daily chart, indicating buying interest at lower levels.
“However, the index is still struggling to cross the crucial resistance zone of 24,590. A sustained move above 24,590 could trigger an extended rally towards the 24,800 – 24,850 levels. On the downside, key support is placed near the 200-Day Simple Moving Average, which lies around 24,050,” Yedve said.
VLA Ambala, Co-Founder of Stock Market Today, highlighted that the Nifty 50 index formed a Bullish Belt Hold candlestick pattern during the last session, with RSI at 60 on the daily timeframe.
“Traders may consider a sell-on-rise strategy if the market opens flat or with a gap-up in today’s session. Amid these situations, Nifty 50 can expect support between 24,350 and 24,300, while resistance can be found near 24,560 and 24,650,” Ambala said.
Bank Nifty Prediction
Bank Nifty index rallied 339.50 points, or 0.63%, to close at 54,610.90 on Wednesday, forming a Piercing Line candlestick pattern, reflecting buying strength on the daily chart.
“Bank Nifty index regained above the 23.6% Fibonacci retracement level of 54,500, suggesting that the recent dip remains within a contained range and has not disrupted the prevailing uptrend. The recovery from lower levels highlights that the primary bullish trend remains firm.
The index is hovering near the upper band of the Donchian Channels, which reflects the continued strength. The strong support is seen at 53,800, while 54,200 remains a key intraday zone to watch,” said Om Mehra.
As long as this region is safeguarded, pullbacks may present buy-on-dip opportunities. On the higher side, a move beyond 55,100 could pave the way for further gains in the sessions ahead, he added.
According to Bajaj Broking Research, Bank Nifty formed a bullish piercing line candle at the 20 days EMA.
“Bank Nifty index has already taken 10 sessions to retrace just 38.2% of the preceding 6 sessions rally. A shallow retracement of the previous up move signals strength and overall positive bias. Key observation is that the last 10 sessions consolidation is inside a falling channel as can be seen in the adjacent chart. We expect it to extend the consolidation in the range of 53,500 – 56,000,” said Bajaj Broking Research.
On the downside, the brokerage firm expects key support between 54,000 – 53,500 levels being the previous breakout area and the previous major gap area.
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.
