The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Monday amid mixed global market cues.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,911 level, a premium of nearly 63 points from the Nifty futures’ previous close.
On Friday, the domestic equity market ended flat amid profit booking, with the benchmark Nifty 50 holding above 24,700 level.
The Sensex eased 7.25 points, or 0.01%, to close at 80,710.76, while the Nifty 50 settled 6.70 points, or 0.03%, higher at 24,741.00.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
The BSE Sensex rose 1.13% last week and ended at 80,710.76 on September 5.
“The Sensex has resistance at 81,000 – 81,500, while support rests at 79,700, with deeper downside risk toward 79,300 if selling intensifies. Sustained upside momentum will likely depend on participation from banking and large-cap financials,” said Om Ghawalkar, Market Analyst, Share.Market (PhonePe Wealth).
Nifty OI Data
On the Nifty options front, maximum Call Open Interest (OI) is at 25,000 then 24,800 strike, while maximum Put OI is at 24,500 then 24,700 strike. Call writing is seen at 24,800 then 25,000 strike while Put writing is seen at 24,700 then 2,4800 strike.
“Option data suggests a broader trading range in between 24,200 to 25,200 zones, while an immediate range between 24,500 to 25,000 levels,” said Chandan Taparia Head Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services Ltd.
Nifty 50 Prediction
Nifty 50 index formed a hammer candlestick pattern on the daily chart, indicating buying interest at lower levels. For the week, Nifty 50 rallied 1.29%, forming an inside bar pattern on the weekly scale, reflecting consolidation within a broader range.
“A small negative candle was formed on the daily chart with a long lower shadow. This was formed after a formation of bearish meeting line type candle pattern of Thursday. Technically this market action indicates turnaround in the market after a small downward correction of two sessions. We observe bullish pattern like higher highs and lows on the intraday timeframe chart (60 min),” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the short-term trend of Nifty 50 remains positive with volatility, and having recovered from near the support of 24600, Nifty 50 is expected to advance towards the crucial overhead resistance of 25,000 by this week. Immediate support is placed at 24,600 levels.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking Ltd. noted that the Nifty 50 managed to close above its 21-DMA, currently placed around 24,700. However, the recent momentum faced resistance near the 50-DMA at 24,980, which also aligns with the upper boundary of a symmetrical triangle pattern on the index.
“For a fresh leg of the uptrend, a decisive breakout above 25,000 is essential. A successful move above this level could open the gates for a rally towards 25,300, and eventually 25,500. On the downside, immediate support lies at the recent swing low of 24,520. Overall, Nifty 50 is expected to consolidate within the broader range of 24,400 – 25,000 this week,” said Jain.
Om Ghawalkar believes that the near-term tone remains cautious but not bearish.
“For the Nifty 50, immediate support is placed at 24,500 – 24,600, with stronger support around 24,000. Resistance is seen near 25,000, a breakout above which could open levels toward 25,150 – 25,250,” he said.
Bank Nifty Prediction
Bank Nifty index gained 39.10 points, or 0.07%, to close at 54,114.55 on Friday, forming a red candle with a long lower shadow on a daily scale, indicating buying interest at lower levels. For the week, the index rose 0.86%.
“For Bank Nifty, the zone of 54,500 – 54,600 will act as an immediate hurdle for the index. While, on the downside, the 200-day EMA zone of 53,600 – 53,500 will act as crucial support for the index. A sustainable move on either side will lead to a trending move in the index,” said Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities.
Om Mehra, Technical Research Analyst, SAMCO Securities said that the Bank Nifty index remains below all short-term moving averages, which continue to act as stiff hurdles, and a decisive close above these averages will be needed to shift momentum back in favour of the bulls.
“The RSI at 38 shows only a gradual improvement from oversold territory. The MACD is in negative territory, though the narrowing histogram suggests that downside pressure is easing. The support is placed at 53,700, and a close below this level could drag the index toward 53,300. On the upside, 54,550 – 54,650 is the critical resistance zone, aligning with short-term averages, and sustaining above this zone will be important to trigger a stronger upmove,” said Mehra.
For now, Bank Nifty remains locked in consolidation, and only a breakout beyond the 53,700 – 55,000 band will determine the next directional move, he added.
Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates Ltd, highlighted that as long as the Bank Nifty sustains above the 200-DEMA as well as the low of the bullish engulfing candle placed near 53,560, a buy-on-dips strategy is recommended. On the higher side, 54,450 will act as a short term hurdle for the Bank Nifty, followed by 54,900.
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.
