The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday, tracking a rally in global markets, ahead of the US Federal Reserve interest rate decision today.
The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 26,140 level, a premium of nearly 50 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market ended lower, with the benchmark Nifty 50 holding above 25,900 level.
The Sensex declined 150.68 points, or 0.18%, to close at 84,628.16, while the Nifty 50 settled 29.85 points, or 0.11%, lower at 25,936.20.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex faced resistance near 84,800 and corrected sharply, but trimmed some losses in the last hour of trading on Tuesday.
“We believe that the intraday market texture is volatile and non-directional; hence, level-based trading would be an ideal strategy for day traders. On the higher side, 84,800 and 85,000 would act as key resistance zones for Sensex, while 84,200 could be an important support area for the bulls. A successful breakout above 85,000 could push Sensex towards 85,300 – 85,500, while below 84,200, the index is likely to retest the levels of 84,000 – 83,700,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Nifty OI Data
Nifty open interest (OI) data indicates strong resistance around the 26,000 mark, while firm support is seen near 25,900 – 25,800.
“Overall, despite a quiet session, the underlying bullish structure remains intact. A decisive move above 26,000 could open the door for further upside, while a fall below 25,700 may lead to short-term consolidation,” said Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 index formed a small-bodied candle with a minor upper shadow and a long lower shadow on the daily chart, indicating indecision amongst the market participants throughout the day.
“A small candle was formed on the daily chart with upper shadow, which indicates a formation of doji or high wave type candle pattern, reflecting ongoing high volatility and confusion among investors in the market. The larger degree bullish pattern like higher tops and bottoms is intact and present weakness could be a buy on dips opportunity,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the near-term trend of Nifty 50 remains positive, but the short-term trend of the market is weak with volatility.
“Immediate support to be watched is around 25,700. A sustainable move above the hurdle of 26,100 is likely to open next upside towards 26,400 – 26,500 levels in the near term,” Shetti said.
Dr. Praveen Dwarakanath, Vice President of Hedged.in said that the Nifty 50 has a strong support at the 25,800 level, from where it bounced in yesterday’s fall.
“Nifty 50 index, on the weekly chart, is trading on the upper Bollinger band, indicating strength in the index. The momentum indicators are also indicating further upside for the index. The next immediate resistance for the index is at the 26,200 levels. The ADX DI+ is sloping upside and the ADX DI- sloping down, indicating strength in the index,” said Dwarakanath.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities believes that Nifty 50 appears to be taking a breather after a strong breakout.
“Looking at key levels, the zone of 26,050 – 26,100 will act as an immediate resistance for the index. If the index manages to give a follow through move above the level of 26,100, then the rally can continue further till 26,300 level. While, on the downside, the zone of 25,750 – 25,700 will act as a crucial support for the index,” said Shah.
Bank Nifty Prediction
Bank Nifty index ended 99.85 points, or 0.17%, higher at 58,214.10 on Tuesday, forming a bullish candle on the daily chart, reflecting strength.
“On the downside, major support for Bank Nifty is placed near 57,480, while the major hurdle is positioned around 58,580. If the index crosses the hurdle of 58,580 decisively, the rally could extend towards 59,000 levels. Thus, short-term traders are advised to adopt a buy-on-dips strategy in Bank Nifty as long as it holds above 57,480 levels,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd.
Om Mehra, Technical Research Analyst, SAMCO Securities noted that the Bank Nifty index continues to hold above its short-term moving average as well as the 23.6% Fibonacci retracement level placed near 57,550.
“The RSI remains around 73, suggesting that momentum is still favouring the bulls. Meanwhile, the MACD stays comfortably above the signal line. The support is placed at 57,800 – 57,700, while the resistance is placed around 58,450 – 58,600. As long as the Bank Nifty index sustains above 57,700, a buy-on-dip approach can be maintained within the prevailing uptrend,” said Mehra.
Bajaj Broking Research said that the immediate support for Bank Nifty is placed at 57,300 – 57,500, coinciding with the previous breakout zone, while a stronger demand base is evident near 56,800 – 56,500 levels.
“We maintain a positive bias and believe that intermittent dips should be utilized as buying opportunities within the established support zones,” said the brokerage firm.
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.
