The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Tuesday, tracking mixed global market cues.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 25,865 level, a discount of nearly 34 points from the Nifty futures’ previous close.
On Monday, the Indian stock market ended flat with a positive bias amid choppyness, with the benchmark Nifty 50 closing above 25,750 level.
The Sensex gained 39.78 points, or 0.05%, to close to 83,978.49, while the Nifty 50 settled 41.25 points, or 0.16%, higher at 25,763.35.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Technically, after a correction, the market has formed an intraday reversal pattern. Additionally, on daily charts, it has formed a small bullish candle, which is largely positive.
“For day traders, 83,700 and 83,500 would act as key support zones. As long as Sensex trades above these levels, a pullback formation is likely to continue, with the index potentially moving up to 84,300. Further upside may also persist, which could lift the index to 84,700. On the flip side, below 83,500, the uptrend would become vulnerable,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
He believes if Sensex falls below this level, the chances of hitting 83,200 would increase.
Nifty OI Data
In the derivatives segment, Nifty open interest (OI) data highlighted the highest call writing at the 25,800 and 25,900 strike prices, while the maximum put OI was observed at the 25,700 strikes, suggesting strong resistance around the 26,000 mark.
“Overall, market sentiment remains cautiously optimistic, with traders awaiting a decisive close above 25,800 to confirm a continuation of bullish momentum. Sustaining above this key resistance zone will be crucial to drive the next leg of the uptrend 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 buying interest near the demand zone.
“A small positive candle was formed on the daily chart with minor upper and lower shadow. Technically, this market action hints at a possibility of completion of short-term downward correction in the market. This is a positive indication,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the near-term uptrend statues of the market remain intact, and Nifty 50 is expected to bounce back from here and could retest the recent swing high of 26,100 levels in the next few sessions. Immediate support is placed at 25,650.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking Ltd. noted that Nifty 50 encountered resistance near 25,800, which continues to act as a strong hurdle.
“A decisive breakout above this level could open the doors for a further move towards 25,900 – 26,000. On the downside, immediate support lies at 25,600, while the key support from the 21-DMA is placed around 25,540. Meanwhile, the volatility index spiked to 12.50, suggesting rising caution among traders and the potential for increased market volatility in the near term,” said Jain.
Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd. said that if the Nifty 50 index holds above 25,645, a relief rally could be possible; however, a sustained move below 25,645 may extend weakness towards 25,450 – 25,400 levels, where the next major demand zone is placed.
“On the higher side, 26,100 continues to act as stiff resistance. As long as Nifty 50 remains below this level, any bounce should be used for booking profits,” said Yedve.
Bank Nifty Prediction
Bank Nifty ended 325.10 points, or 0.56%, higher at 58,101.45, and formed a bullish candle, signalling a recovery attempt after two muted sessions.
“Bank Nifty displayed notable relative strength, forming a strong bullish candle on the daily chart, aided by buying interest in PSU banks. Going forward, the 57,650 – 57,700 zone is likely to serve as an important support area, while resistance is placed around 58,250 – 58,350. A decisive breakout above 58,350 may open the door for an up-move toward 59,000 in the short term,” said Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that the Bank Nifty index reclaimed its short-term support zone and remains positioned above the 9-EMA.
“Bank Nifty hovers within a symmetrical triangle pattern, with immediate support near the 57,800 and resistance around 58,350 – 58,450. A breakout on either side of this formation is likely to determine the next directional move. The index holds above the middle Bollinger Band, confirming that the broader outlook remains positive as long as this level is protected.
The RSI is placed at 66, has rebounded from its lower zone, while the MACD, though marginally flattened, remains above the signal line,” said Mehra.
Overall, the setup remains positive, and any dip is likely to be viewed as an opportunity to re-enter the prevailing uptrend, 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.
