The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday, tracking upbeat momentum in global markets.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 26,159 level, a premium of nearly 104 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market extended losses for the third consecutive session, with the benchmark Nifty 50 closing below 25,900 level.
The Sensex fell 313.70 points, or 0.37%, to close at 84,587.01, while the Nifty 50 settled the November F&O series at 25,884.80, down 74.70 points, or 0.29%.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex formed a bearish candle on the daily charts and is holding a lower top formation on intraday charts, which is largely negative.
“We believe that the 85,000 – 85,200 zone remains a key resistance area for traders. As long as Sensex trades below this level, weak sentiment is likely to continue. On the downside, 84,300 would act as an immediate support zone for the bulls. Below this, the index could slip up to 84,000,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the higher side, he believes a successful breakout above 85,200 could push Sensex towards 85,500 – 85,700.
Nifty OI Data
Nifty derivatives data pointed to strong call writing at the 26,000 strike, while maximum put open interest at 25,800 indicated firm demand at lower levels. While the broader sentiment remains cautiously optimistic, a sustained close above the 26,000 mark will be essential to revive bullish momentum and unlock further upside potential in the coming sessions, said Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 formed a third consecutive bearish candle with a lower high and lower low, signalling extension of profit booking as the index faces selling pressure at higher levels around the previous all-time high.
“A long bear candle has been formed on the daily chart with minor upper shadow. Technically, this market action indicates a down trend continuation pattern in the market for the short term. The formation of overlapping negative candles in the last few sessions signals a sell on rise in the market,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the larger degree bullish pattern like higher tops and bottoms is intact and present weakness is expected to find a base at the cluster support of around 25,800 – 25,700 levels to form a new higher bottom in the next few sessions. Immediate resistance is placed at 26,050.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking Ltd. said that a clear move above 26,000 is now essential to spark short covering and pave the way toward 26,200.
“At present, the Nifty 50 index is precariously positioned near its 21-DMA at 25,850, slipping below this support could accelerate the downside toward 25,700. The broader trend remains bullish, and a buy-on-dip strategy is likely to work as long as the Nifty 50 holds above its 50-DMA, currently positioned near the 25,490 level,” said Jain.
Looking at key levels, Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities believes that the 20-day EMA zone of 25,850 – 25,800 is expected to act as a crucial support for the Nifty 50 index.
“Any sustained move below 25,800 could drive the index towards 25,600. On the upside, the zone of 26,000 – 26,050 zone remains strong resistance for the index,” said Shah.
Bank Nifty Prediction
Bank Nifty index fell 15.05 points, or 0.03%, to close at 58,820.30 on Tuesday, forming a red candle with long upper shadows on the daily scale, reflecting selling pressure at higher levels.
“Immediate support for the Bank Nifty index is seen near 58,580, and a sustained move below this level could trigger fresh weakness towards 58,000 – 57,800. On the upside, 59,440 will remain a strong hurdle for the index. As long as Bank Nifty trades below 59,440, traders are advised to keep booking profits on any bounce,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd.
Bajaj Broking Research highlighted that the Bank Nifty index formed a small bearish candle which remained contained inside previous session price range signalling consolidation amid stock specific action on the monthly expiry session.
“Bank Nifty index is seen consolidating above the recent range breakout area (57,300 – 58,500). Overall bias remains positive above the breakout area of 58,200 – 58,500. We expect the index to retain its positive momentum and move towards the 59,800 level in the coming weeks, based on the measuring implication of the recent range breakout,” said Bajaj Broking Research.
Meanwhile, the 58,200 – 58,000 zone is likely to act as a crucial support area, with the previous resistance now expected to serve as support, the brokerage firm added. It believes the current breather should be used to accumulate quality banking stocks in a staggered manner.
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.
