The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to see a muted opening on Wednesday, tracking weak global market cues.
The trends on Gift Nifty also indicate a flattish start for the Indian benchmark index. The Gift Nifty was trading around 25,945 level, a discount of nearly 4 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market ended lower, with the benchmark Nifty 50 closing near 25,900 level.
The Sensex dropped 277.93 points, or 0.33%, to close at 84,673.02, while the Nifty 50 settled 103.40 points, or 0.40%, lower at 25,910.05.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a bearish candle on daily charts, indicating further weakness from the current levels. However, the short-term market outlook remains positive.
“We are of the view that the 20-day SMA (Simple Moving Average) at around 84,500 and 84,300 would act as key support zones for traders. As long as Sensex is trading above these levels, the positive trend is likely to continue. On the higher side, 85,000 would be the immediate resistance zone for the bulls. A breakout above 85,000 could push the index up to 85,300 – 85,500,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Conversely, a break below 84,300 could change the sentiment, and below this level, Sensex could slip till 84,000 – 83,800, he added.
Mayank Jain, Market Analyst, Share.Market said that the technical support for Sensex is placed at 84,500 – 84,400, whereas a sustained move above 85,000 – 85,100 could trigger fresh bullish momentum.
Nifty OI Data
In the derivatives segment, significant call writing at the 26,000 strike and maximum put open interest at 25,900 signal strong overhead supply and firm support at lower levels.
“Overall sentiment remains cautiously optimistic, but a sustained close above 26,000 will be essential to reinstate bullish momentum and pave the way for further upside in the coming sessions,” said Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 formed a bearish engulfing candle on the daily chart, signaling a potential pause in the trend.
“A long bear candle has been formed on the daily chart, which indicates the presence of strong hurdle around 26,000 – 26,100 levels. Hence, there is a possibility of consolidation in the short term before a decisive breakout of the resistance in the near term,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the near-term uptrend of Nifty 50 remains intact and the short-term consolidation or weakness is likely to end in the next couple of sessions. Further weakness from here could find support around 25,800 – 25,750 levels and one may expect a bounce back from the lows.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking Ltd highlighted that the Nifty 50 encountered resistance near the 26,000 mark, which remains a key psychological hurdle.
“A decisive breakout above this level could pave the way for an upside move toward 26,200. On the downside, immediate support lies at the 21-DMA around 25,800. The market is currently in a consolidation phase, and once this phase concludes, Nifty 50 could resume its upward trajectory and potentially reach new record highs in the near term,” said Jain.
Dr. Praveen Dwarakanath, Vice President of Hedged.in said that the momentum indicators are turning down from the overbought region, suggesting a possible fall in the Nifty 50 index.
“The ADX DI+ line is sloping down, and the ADX DI- line is sloping up, indicating a possible turn down from the current levels. The Bollinger band is squeezed, indicating a possible sideways to downside move from the current levels,” said Dwarakanath.
Bank Nifty Prediction
Bank Nifty index fell 63.45 points, or 0.11%, to close at 58,899.25 on Tuesday, and formed a small red candle on the daily scale, signalling profit booking.
“Immediate support for the Bank Nifty index is seen near 58,580, while resistance is placed around 59,200, where the trend line hurdle is located. Thus, traders are advised to buy near support and book profits near the resistance levels mentioned above,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities sees the zone of 59,100 – 59,200 as a critical hurdle for the Bank Nifty index.
“A decisive and sustainable move above 59,200 could trigger a sharp upside rally, opening the path towards 59,600, and potentially 60,000 in the short term. On the downside, the 58,600 – 58,500 zone remains an important support area. A breach of this zone may lead to further weakness, but as long as the index holds above these levels, the overall trend remains constructive,” said Shah.
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.
