The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to see a cautious opening on Friday, tracking global market cues.
The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 26,058 level, a premium of nearly 26 points from the Nifty futures’ previous close.
On Thursday, the Indian stock market ended with steep losses, and the benchmark Nifty 50 closed below 25,900 level.
The dropped 592.67 points, or 0.70%, to close at 84,404.46, while the Nifty 50 settled 176.05 points, or 0.68%, lower at 25,877.85.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex formed a bearish candle on daily charts and a double top formation on intraday charts, indicating further weakness from the current levels.
“We are of the view that Sensex is witnessing range-bound activity; hence, level-based trading would be the ideal strategy for day traders. For day traders, as long as is trading below 84,500, the weak sentiment is likely to continue on the downside, with the market potentially slipping to 84,200. Further downside may also continue, which could drag the index to 84,000,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the flip side, he believes the sentiment could change above 84,500, and if Sensex moves above this level, it could rise to 84,800 – 85,000.
Nifty OI Data
In the derivatives segment, maximum Nifty Call Open Interest (OI) was observed at the 25,900 and 26,000 strikes, while maximum Put OI was concentrated at the 25,800 and 25,700 strikes.
“This OI setup suggests that immediate support is likely to be found around the 25,800 – 25,700 zone, while resistance may emerge near the 25,900 – 26,000 range. A decisive move beyond this resistance band could help the index regain upward momentum in the near term,” said Hardik Matalia, Derivative Analyst – Research at Choice Equity Broking Private Limited.
Nifty 50 Prediction
Nifty 50 index formed a strong bearish-bodied candle with both upper and lower wicks on the daily chart, indicating selling pressure and intraday volatility after recent gains.
“A long bear candle was formed on the daily chart with minor upper and lower shadow. Technically, this market action indicates presence of crucial resistance around 26,100 and profit booking from the highs. Nifty 50 is presently moving within a broader high low range of 26,100 – 25,800 levels and is now sliding down to the lower range,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the near-term trend of remains positive and the short term is in profit booking mode. There is a possibility of Nifty 50 finding support around 25,800 – 25,700 levels in the next couple of sessions before bouncing back again from the lows.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, said that the zone of 25,800 – 25,750 will act as an important support for the Nifty 50 index.
“While, on the upside, the zone of 26,030 – 26,050 will act as a crucial hurdle. Any sustainable move above the level of 26,050 will lead to a sharp upside rally to the 26,200 level, followed by 26,350 level,” said Shah.
Hardik Matalia believes that the immediate support for Nifty 50 is placed around 25,800, followed by 25,700, and a breakdown below these levels could trigger extended downside pressure in the near term.
“On the upside, psychological resistance is seen at 26,000, followed by 26,100. A decisive move above 26,100 would be essential to regain bullish momentum and re-establish the upward trajectory,” said Matalia.
Bank Nifty Prediction
Bank Nifty index declined 354.15 points, or 0.61%, to close at 58,031.10, on Thursday, and formed a small red candle with a long upper shadow on the daily chart, reflecting selling pressure at higher levels.
“On the downside, major support for Bank Nifty is seen near 57,630, while the immediate hurdle is positioned around 58,580. As long as the index holds above 57,630, it is likely to consolidate within the band of 57,630 – 58,580. A decisive break above 58,580 could propel the index towards the 59,000 level,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd.
Bajaj Broking Research said that a decisive move above last week’s high of 58,577 would confirm a breakout continuation, paving the way for a rally towards 59,000 and 59,300 for , which correspond to the 138.2% Fibonacci projection of the recent correction (57,628 – 53,561).
“However, failure to clear this level may result in range-bound movement between 58,600 and 57,300 in the near term. On the downside, immediate support is seen around 57,300 – 57,500, aligning with the previous breakout zone, while a stronger support base lies near 56,800 – 56,500. Overall, the outlook remains positive, and any pullbacks should be viewed as buying opportunities within these support areas,” 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.