The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a tepid note on Friday, tracking weak global market cues.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 25,613 level, a discount of nearly 43 points from the Nifty futures’ previous close.
On Thursday, the Indian stock market witnessed a stellar rally, extending gains for the second consecutive session, with the benchmark Nifty 50 closing above 25,500 level.
The Sensex jumped 862.23 points, or 1.04%, to close at 83,467.66, while the Nifty 50 settled 261.75 points, or 1.03%, higher at 25,585.30.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex formed a bullish candle on daily charts, and is holding an uptrend continuation formation on intraday charts, which is largely positive.
“We are of the view that the short-term market texture is bullish, but due to temporary overbought conditions, we could see range-bound activity in the near future. For traders, now, 83,200 – 82,900 would act as key support zones for Sensex. On the higher side, 83,800 – 84,000 would be the key resistance areas for the bulls. However, below 82,900 the uptrend would become vulnerable,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Nifty OI Data
In the derivatives segment, the highest Nifty Call Open Interest (OI) was observed at the 25,600 and 25,700 strikes, while maximum Put OI was concentrated at the 25,500 and 25,400 strikes.
“This OI setup suggests a strong support base around 25,500 – 25,400, while resistance is likely to emerge near the 25,600 – 25,700 zone. A decisive move beyond this resistance range could further strengthen bullish momentum in the near term,” said Hardik Matalia, Derivative Analyst – Research at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 index formed a strong bullish candle with a higher high and higher low, signaling continuation of the positive momentum.
“A long bull candle has formed on the daily chart, which has surpassed the crucial overhead resistance of 25,400 – 25,500 levels (down sloping trend line as per daily/weekly chart). Previous swing high of 25,669 in early July is now on the edge of breakout. Larger degree bullish pattern like higher tops and bottoms is intact on the weekly chart and Nifty 50 is now in line with the new higher top formation of the sequence,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend of Nifty 50 continues to be positive and the market is likely to move up further in the short term.
“A sustainable move above 25,600 – 25,700 levels could pull Nifty 50 towards the next upside target of around 26,000 – 26,200 levels in the near term,” Shetti said.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking noted that the Nifty 50 index broke out above a major falling trend line that connects all key tops since the previous record high of 26,277, indicating the potential for further upside in the coming sessions.
“On the derivatives front, fresh long positions are being built, reinforcing the bullish sentiment. Momentum indicators and oscillators continue to signal a buy on both daily and weekly charts. Overall, the trend remains positive, with Nifty 50 likely to head towards 25,800 – 26,000 levels in the short term, while support has now shifted higher to around 25,420,” said Jain.
Dr. Praveen Dwarakanath, Vice President of Hedged.in said that the momentum indicators on the weekly chart indicate strong momentum and suggest that prices can continue to rise much higher.
“Nifty 50 is likely to move towards its all-time high of 26,250 before this month’s expiry. The ADX DI+ line is sloping upward, with the ADX DI- line sloping downward on the weekly chart, indicating further upside in the index. The index has closed near the upper Bollinger band; a close in the coming days above the upper band may suggest a walk on the band in the daily chart,” said Dwarakanath.
Bank Nifty Prediction
Bank Nifty rallied 622.65 points, or 1.10%, to close at 57,422.55 on Thursday, forming a bullish candle on the daily chart, reflecting continued strength.
“Immediate support for Bank Nifty is placed near the Bullish gap zone which is around 56,920. As long as the index holds above 56,920, the ongoing bullish momentum is likely to persist. On the upside, major resistance for Bank Nifty is placed near 57,630. If the index sustains above this level, the rally could extend towards 58,000 – 58,500 levels. Hence, traders are advised to maintain a buy-on-dips strategy in Bank Nifty for the short term,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities said that the Bank Nifty is trading above its crucial moving averages, which are in a rising trend, and momentum indicators are also pointing towards continued strength. This reinforces the view that the index is in a well-supported uptrend.
“Given the current chart structure and momentum, Bank Nifty is likely to maintain its upward bias and test the level of 58,000 in the short term. On the downside, the zone of 57,100 – 57,000 will act as a crucial support area, and a sustained move above this range will keep the bullish setup intact,” said Shah.
According to Bajaj Broking Research, Bank Nifty formed a bull candle with a higher high and higher low and a bullish gap below its base, highlighting continuation of the positive momentum.
“With prices holding above key moving averages, the near-term bias remains upward. The Bank Nifty index is likely to test our target of 58,000, being the 161.8% external retracement of the previous up move (53,561 – 55,835) as projected from the recent trough of 54,226. Thursday’s gap area of 56,700 will act as immediate support for the index. The RSI (14) at 66 indicates healthy momentum, suggesting strength in the uptrend. Any dips should be viewed as buying opportunities within this constructive setup,” 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.
