The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to see a muted opening on Wednesday, tracking mixed global market cues.
The trends on Gift Nifty also indicate a flat start for the Indian benchmark index. The Gift Nifty was trading around 25,212 level, a discount of nearly 13 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity market extended gains for the fourth consecutive session, with the benchmark Nifty 50 closing above 25,100 level.
The Sensex gained 136.63 points, or 0.17%, to close at 81,926.75, while the Nifty 50 settled 30.65 points, or 0.12%, higher at 25,108.30.
Here’s what to expect from Nifty 50, and Bank Nifty today:
Nifty 50 Prediction
Nifty 50 formed a shooting star candle on the daily chart, indicating profit booking at higher levels.
“A small bull candle was formed on the daily chart with a long upper shadow. Technically, this market action indicates a formation of reversal pattern of uptrend which needs to be confirmed with substantial negative close by next session. Any weakness below the 25,000 mark could confirm a bearish Shooting Star type three candle reversal pattern,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the short term uptrend of Nifty 50 remains intact, but the market has started to show signs of profit booking from the higher levels.
“A slide below 25,000 – 24,900 levels could possibly open short term downward correction in the market. However, a sustainable move above the hurdle of 25,200 could pull the Nifty 50 towards 25,450 levels in the near term,” Shetti said.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking Ltd. noted that the Nifty 50 formed a shooting star candlestick pattern, indicating a potential short-term pause in the ongoing uptrend.
“Nevertheless, the broader trend remains constructive. The RSI has bounced back from oversold territory to 55, reflecting renewed strength in short-term momentum. The support base has now shifted higher to 25,000, and as long as the index stays above this level, a move towards 25,500 in the October series appears likely,” said Jain.
Dr. Praveen Dwarakanath, Vice President of Hedged.in said that the Nifty 50 index has immediate support at the 25,100 level and resistance at the 25,220 level. The break of support at 25,100 can take the index towards the next support at 24,850 levels.
“The momentum indicators on an hourly chart have shifted gears after the intraday selloff in yesterday’s rally, suggesting a likely break of support at the 25,100 level. The index is taking support from the 20-day moving average at the 25,100 level, a break of which can push the index towards the 25,000 and then to the 24,800 level,” said Dwarakanath.
Bank Nifty Prediction
Bank Nifty index ended 134.50 points, or 0.24%, higher at 56,239.35 on Tuesday, forming a bullish candle with a long upper shadow on a daily scale, indicating selling pressure at higher levels.
“Bank Nifty index on a daily scale formed a green candle with a long upper shadow, indicating selling pressure at higher levels. Thus, 56,500 will act as an immediate hurdle for the index. If the index sustains above 56,500, the rally could extend towards 57,000 – 57,500 levels. On the downside, psychological level 56,000 will act as immediate support for Bank Nifty followed by the recent breakout point of 55,700,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates Ltd.
Hence, he advises traders to maintain a buy-on-dips strategy in the short term.
Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities said that the zone of 56,500 – 56,600 will act as a crucial hurdle for the Bank Nifty index, and a sustained move above 56,600 could trigger a sharp upside rally, potentially extending towards the 57,100 mark. On the downside, the zone of 55,800 – 55,700 will act as an important support.
According to Om Mehra, Technical Research Analyst, SAMCO Securities, Bank Nifty continues to hold above all major moving averages, reaffirming short-term strength.
“The Bollinger upper band, placed near 56,250, has been marginally tested, suggesting that a temporary pause could occur if follow-through buying does not emerge. The RSI at 64, remains comfortably in the positive zone, while the MACD maintains its bullish crossover, supporting the ongoing momentum. The support is placed near 55,800, followed by 55,500, while resistance lies at 56,500 – 56,700 as per Fibonacci projections,” Mehra said.
Although the trend remains bullish, the formation of an inverted hammer coupled with a stretched short-term rally calls for slight caution at higher levels, he added.
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.
