The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Thursday, tracking mixed cues from global markets.
The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 25,953 level, a discount of nearly 33 points from the Nifty futures’ previous close.
On Wednesday, the Indian stock market extended its rally for the third consecutive session and ended sharply higher, with the Nifty 50 closing above 25,850.
The Sensex surged 595.19 points, or 0.71%, to close at 84,466.51, while the Nifty 50 settled 180.85 points, or 0.70%, higher at 25,875.80.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex is showing a continuation of the uptrend on intraday charts, which supports further upward movement from the current levels.
“For trend-following traders, 84,300 and 20-day SMA (Simple Moving Average), or 84,000, would act as a key support zone. As long as Sensex is trading above this level, the bullish sentiment is likely to continue. On the higher side, the index could move up to 84,800. Further upside may also push the index up to 85,000,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the flip side, he believes if Sensex falls below the 20-day SMA, or below 84,000, the sentiment could change, and below this level, traders may consider exiting their long positions.
Analysts at Share.Market said that the support for Sensex is reaffirmed at 83,900 – 84,000, while resistance is now placed around 84,500, while sustained close above this resistance zone could pave the way for further upside in the near term.
Nifty OI Data
In the derivatives segment, Nifty open interest (OI) data indicated the highest call writing at the 25,900 and 26,000 strike prices, while maximum put OI was concentrated at 25,800 — highlighting strong resistance around the 25,900 level.
“Overall, sentiment remains cautiously optimistic, and a sustained close above the 25,900 mark will be crucial to reinforce bullish momentum and open the door for further upside in the near term,” said Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 formed a green candle on the daily chart, indicating strength.
“A reasonable bull candle was formed on the daily chart with minor upper and lower shadow. Technically, this market action indicates an uptrend continuation pattern. If the present opening up gap remains open for the next 2-3 sessions, then that gap could be considered as a bullish runaway gap, which is normally formed in the middle of the trend,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying short-term trend of Nifty 50 remains positive, and the next upside targets to be watched are around 26,100 – 26,200 levels for the next few sessions. Immediate support is placed at 25,700 levels.
Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities said that the 25,760 – 25,730 zone will act as an immediate support area for the Nifty 50 index.
“A break below 25,730 could trigger profit booking toward 25,560. On the upside, the 26,000 – 26,030 zone will act as a key resistance, and a sustained move above 26,030 could open the gates for further upside toward 26,180 in the near term,” said Shah.
Technically, support levels for the Nifty 50 are seen around 25,700 – 25,750, while resistance is positioned at 26,000 – 26,050, and a breakout above this zone could open the door for fresh short-term gains, according to analysts at Share.Market.
Bank Nifty Prediction
Bank Nifty index ended 136.50 points, or 0.23%, higher at 58,274.65 on Wednesday, forming a Bearish Opening Marubozu candle on the daily chart, indicating strong selling pressure near the 58,500 – 58,580 zone.
“Immediate support for the index is placed near 57,590. Thus, in the short term, the Bank Nifty index is likely to consolidate within the 57,590 – 58,580 band. A decisive breakout on either side will determine the next directional move for the index,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd.
Ponmudi R, CEO of Enrich Money noted that despite bouts of intraday profit-booking, the Bank Nifty index held firmly above the 58,250 psychological level, reflecting strong underlying bullish sentiment.
“The near-term range remains defined between 58,200 – 58,500, and a decisive breakout above 58,500 could set the stage for an extended rally toward the 59,000 milestone,” said Ponmudi R.
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.
