The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Monday, tracking a rally in global markets, on developments over the US-China trade deal.
The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 25,914 level, a premium of nearly 100 points from the Nifty futures’ previous close.
On Friday, the Indian stock market snapped its six-day gaining streak and ended lower on profit-booking.
The Sensex dropped 344.52 points, or 0.41%, to close at 84,211.88, while the Nifty 50 settled 96.25 points, or 0.37%, lower at 25,795.15.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex faced profit booking after hitting a high of 85,290, indicating that traders may be turning cautious after the steep rise.
“With technical indicators softening and profit booking setting in, the next few sessions will be crucial in determining whether this is a temporary pause or the beginning of a broader correction. Going ahead, the zone of 83,350 – 83,250 will act as a crucial support for the index as it is the confluence of the 13-day EMA level and 38.2% Fibonacci retracement level of its recent upward rally,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
While on the upside, he said that the zone of 84,700 – 84,800 will act as a crucial hurdle for the index, and any sustainable move above the level of 84,800 will lead to a sharp upside rally upto the 85,500 level.
“The Sensex maintained its resilient stance, closing the week at 84,211.88, just below its key resistance zone. Support is seen at 84,065 and 83,700 – 83,150, providing a cushion for short-term dips. A sustained close above 84,500 – 84,800 could trigger a breakout, potentially pushing the index toward its record high of 85,978,” said Ponmudi R, CEO, Enrich Money.
With Sensex holding above 84,000, the overall structure remains positive, and any minor pullbacks are likely to be limited, reflecting continued investor confidence in the market’s uptrend, he added.
Nifty 50 Prediction
Nifty 50 index formed a big bearish candle on the daily chart. For the week, the index rose 0.33% and formed a doji candle on the weekly chart, signaling indecision.
“A long negative candle was formed on the daily chart with minor lower shadow. Technically, this market action indicates downward correction in the market after a stellar upmove recently. The bullish pattern like higher tops and bottoms continued in Nifty 50 as per daily timeframe chart and present weakness could be in line with the new higher bottom of the pattern. However, the higher bottom reversal pattern needs to be confirmed,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the overall near-term trend of Nifty 50 remains positive but the market is facing selling pressure as per short-term basis.
“Further weakness from here could bring crucial support around 25,600 – 25,500 levels, which could be a buy on dips opportunity for the next week. Immediate resistance is placed at 25,950,” said Shetti.
Puneet Singhania, Director of Master Trust Group noted that the Nifty 50 remains above its 21-day and 55-day EMAs — indicating sustained bullish momentum.
“The MACD indicator is also positive, supporting the ongoing uptrend. Technically, resistance is seen near 26,000, where a successful breakout could propel Nifty 50 to all-time highs around 26,300. On the downside, the 25,400 – 25,500 zone is a critical support area, providing strong buying opportunities on dips and maintaining a favorable risk-reward setup for positional traders and investors,” said Singhania.
Ponmudi R said that 26,100 will act as a major hurdle for the Nifty 50 index, whereas on the downside, the recent breakout zones of 25,670 and 25,450 will serve as key short-term support levels.
“Hence, traders are advised to book profits on bounce and wait for the index to form a reversal candle near the mentioned support zones,” said Ponmudi R.
Bank Nifty Prediction
Bank Nifty index declined 378.45 points, or 0.65%, to close at 57,699.60 on Friday, forming a red candle on the daily chart. For the week, the index eased 0.02% and formed a shooting star pattern on the weekly chart, signalling selling pressure at higher levels.
“The zone of 57,000 – 56,900 will act as important support for the Bank Nifty index as the 38.2% Fibonacci retracement level of its recent upward rally is placed in that region. While on the upside, the zone of 58,200 – 58,300 will act as a crucial hurdle for the index. Any sustainable move above the level of 58,300 will lead to a sharp upside rally upto the level of 59,000, followed by 59,500 in the short term,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd. said that major support for Bank Nifty is placed near 56,920 where the bullish gap support is placed, while the major hurdle is positioned around 58,580. As long as the index remains below 58,580, he advises traders to book profits on bounce.
Bajaj Broking Research expects the Bank Nifty index to consolidate with positive bias, with immediate support placed at 57,300 – 57,500 levels being the last week breakout area and a stronger demand zone seen near 56,800 – 56,500 levels.
“On the higher side, resistance is placed around 58,500 and 59,000 levels being the 138.2% retracement of the entire previous decline. From an oscillator perspective, the Stochastic indicator has reversed upward and is nearing the overbought territory, suggesting a possible phase of consolidation with a positive undertone,” said Bajaj Broking Research.
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.
