The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Friday, tracking mixed cues from global markets.
The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 26,414 level, a premium of nearly 24 points from the Nifty futures’ previous close.
On Thursday, the Indian stock market ended indices marginally higher after hitting their record highs in intraday trade, with the benchmark Nifty 50 closing above 26,200.
The Sensex rose 110.87 points, or 0.13%, to close at 85,720.38, while the Nifty 50 settled 10.25 points, or 0.04%, higher at 26,215.55.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex touched a life-time high of 86,055.86 during Thursday’s trading session. The short-term outlook of the market remains positive.
“We believe that 85,500 and 85,200 remain strong support levels for the bulls. As long as Sensex trades above these levels, the bullish sentiment is likely to continue. On the higher side, 86,000 – 86,300 would act as key resistance areas for the bulls. However, below 85,200, the sentiment could change. Below these levels, traders may prefer to exit their long positions,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Nifty 50 Prediction
Nifty 50 formed a small bodied candle with shadows in either direction, signaling consolidation amid stock specific action. The index hit a record high of 26,310.45 during the session.
“A small red candle was formed on the daily chart with minor upper and lower shadow. Technically, this market action indicates a consolidation movement in the market post breakout. This market action also suggests some more choppy movement for the short term before showing another round of sharp upmove in the near-term,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, immediate support for Nifty 50 is placed at 26,100 – 26,050, and the next upside levels to be watched are around 26,600.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking believes that the overall structure for Nifty 50 remains constructive, with potential for an advance toward 26,350, while immediate support has moved up to 26,000.
“Momentum indicators are also encouraging where the MACD has generated a fresh buy crossover on the daily chart, and the RSI has moved above 60, reinforcing the positive trend. However, chasing the index at elevated levels is not recommended, as the risk-reward setup is currently unfavourable. Waiting for a meaningful pullback would be more prudent for fresh entries,” said Jain.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities said that the zone of 26,300 – 26,330 will act as an important hurdle for the Nifty 50 index, and any sustainable move above the 26,330 level will lead to a sharp upside rally upto the 26,500 in the short term. While on the downside, he added that the zone of 26,090 – 26,060 will act as crucial support for the index.
Bank Nifty Prediction
Bank Nifty index ended 209.25 points, or 0.35%, higher at 59,737.30 on Thursday, forming a small bullish candlestick pattern with a higher high and a higher low, signaling continuation of the positive momentum. The index hit a record high of 59,866.60 during the session.
“Bank Nifty index witnessed mild profit booking near the trendline resistance; however, it still managed to form a bullish candle, indicating underlying strength. As long as Bank Nifty holds above 59,400, the ongoing rally could see an extension toward the 59,900 – 60,000 marks,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd.
He advises short-term traders to maintain a buy-on-dips approach in Bank Nifty.
Bajaj Broking Research expects the Bank Nifty index to retain its positive momentum and move towards the 60,400 level in the coming sessions, based on the measuring implication of the recent range breakout.
“A move above that will open further upside towards 61,000 levels in the coming weeks Meanwhile, the 58,800 – 58,600 is likely to act as a crucial support area being the lows of the last two weeks,” said the brokerage firm.
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.
