The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Tuesday, tracking upbeat cues from global markets.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,940 level, a premium of nearly 47 points from the Nifty futures’ previous close.
On Monday, the equity market ended marginally higher, with the benchmark Nifty 50 holding above 24,700 level.
The rose 76.54 points, or 0.09%, to close at 80,787.30, while the Nifty 50 index settled 32.15 points, or 0.13%, higher at 24,773.15.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex formed an indecisive candlestick formation on the daily charts, which indicates an indecisiveness between bulls and bears.
“We are of the view that the short-term market outlook would remain volatile; however, a fresh uptrend rally is possible only after crossing the 81,200 level. Above this, could move up to 81,500. Further upside may also continue, potentially lifting the index up to 81,800. On the downside, 80,500 and 80,300 are key support zones for day traders,” said Shrikant Chouhan, Head – Equity Research at Kotak Securities.
If Sensex falls below 80,300, then he believes the index might fall to 80,000 or 79,800 levels in the short term.
Nifty OI Data
In the derivatives market, the highest Nifty Call open interest (OI) was at the 24,900 strike, while the highest Put open interest was at the 24,500 level, indicating a firm resistance near 24,900 and solid support around 24,500.
Nifty 50 Prediction
Nifty 50 formed a Doji candle on the daily chart, reflecting indecision among market participants.
“A small red candle was formed on the daily chart with a long upper shadow. Technically, this market action indicates a consolidation movement in the market with volatility. Though, buying is emerging from the lows, the market is finding stiff resistance of around 24,900 – 25,000 levels (down sloping trend line on the daily chart and previous weekly highs). However, Nifty 50 manages to close above the daily 10/20-day EMA around 24,730 levels,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend of remains positive with choppy movement.
“Having placed below the crucial overhead resistance around 24,900 – 25,000 levels, there is a possibility of some more consolidation or minor weakness in the next 1-2 sessions. Immediate support is placed at 24,620. A decisive upside above 25,000 is likely to open sharp buying in the market,” Shetti said.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking said that on the downside, immediate support remains at 24,710, followed by 24,620.
“Overall, the market continues to lack a clear directional bias, and the Nifty 50 is expected to consolidate within a broader range of 24,600 – 24,950 ahead of the weekly expiry. A decisive breakout above the 25,000 mark is crucial to trigger a fresh leg of the uptrend. If this breakout occurs, it could pave the way for a rally towards 25,300, and potentially extend to 25,500,” said Jain.
Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities noted that the Nifty 50 now sits slightly below the 50-Day EMA level of 24,788, while the Relative Strength Index (RSI), closed flat, ending at the 50 mark, signalling neutral momentum where the gains and losses are balanced.
“Looking at key levels, the 24,750 – 24,700 zone will act as immediate support. A decisive move below 24,700 could accelerate the decline towards 24,600. On the upside, the 24,900 – 24,950 zone will serve as immediate resistance,” said Shah.
Bank Nifty Prediction
Bank Nifty index gained 72.35 points, or 0.13%, to close at 54,186.90 on Monday, forming a doji candle with a long upper shadow and a minor lower shadow on a daily scale, indicating uncertainty.
“Bank Nifty index remains below short-term moving averages, with the 20-EMA acting as a stiff hurdle near 54,850. On the downside, support is intact at 53,700, with a further cushion at 53,500, which holds as a broader base. The RSI has recovered to 39, showing a rebound from oversold territory. In addition, Nifty Bank remains beneath the middle Bollinger Band, and sustaining above this level would be important to shift momentum to the higher side,” said Om Mehra, Technical Research Analyst, SAMCO Securities.
Overall, he believes, is consolidating in a wide 53,700 – 54,800 band, and a close above 54,550 would strengthen the short-term rebound.
Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd. said that on the downside, the 200-DEMA is placed near 53,600 while the low of the bullish engulfing candle is near 53,560, making the 53,560 – 53,600 zone a strong demand area.
“As long as the Bank Nifty sustains above this zone, a buy-on-dips strategy is more favourable. On the upside, 54,450 will act as a short-term hurdle for the Bank Nifty, followed by 54,900,” Yedve said.
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.