The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open with minor gains on Thursday, tracking positive global market cues.
The trends on Gift Nifty also indicate a marginally higher start for the Indian benchmark index. The Gift Nifty was trading around 25,735 level, a premium of nearly 27 points from the Nifty futures’ previous close.
The domestic on Wednesday, November 5, on account of Guru Nanak Jayanti holiday.
On Tuesday, the Indian stock market ended sharply, with the benchmark Nifty 50 slipping below 25,600 level.
The dropped 519.34 points, or 0.62%, to close at 83,459.15, while the Nifty 50 settled 165.70 points, or 0.64%, lower at 25,597.65.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex is holding a lower top formation on intraday charts, and has formed a bearish candle on daily charts, which indicates further weakness from the current levels.
“We are of the view that, as long as Sensex is trading below 83,750, weak sentiment is likely to continue. On the downside, the index could slip to 83,300. Further weakness may also persist, which could drag to 83,000 – 82,800. On the flip side, above 83,750, the index is likely to bounce back to 84,100 and 84,400,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
The current market texture is volatile; hence, level-based trading would be the ideal strategy for day traders, he added.
Nifty OI Data
In the derivatives segment, Nifty open interest (OI) data showed the highest call writing at the 25,700 strike, while the maximum put OI was concentrated at the 25,600 strike, suggesting firm resistance near the 25,700 level, said Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 formed a long bearish candle on the daily chart, signaling consolidation with a downward bias.
“A long bear candle was formed after a small bullish candle of Monday which indicates sharp profit booking in the market. The larger degree bullish pattern like higher tops and bottoms is intact and Nifty 50 is now sliding down to form a new higher bottom of the pattern. But the higher bottom reversal needs to be confirmed,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying short-term trend of continues to be weak, but the medium term remains bullish.
“Nifty 50 is expected to slide down to the crucial role reversal support of 25,500 – 25,400 levels in the near term before bouncing back from the lows. Hence, one may look for a buy on dips opportunity. Immediate resistance is placed at 25,800,” said Shetti.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking noted that the momentum indicators and oscillators have given a sell crossover on the daily chart, indicating that short-term weakness is likely to persist.
“Immediate support is placed at the 21-DMA near 25,570, followed by psychological support at 25,500 levels. On the contrary, a decisive move above 25,800 would negate the bearish setup and open the door for a fresh upside. Overall, the Nifty 50 is expected to trade within a broader range of 25,400 – 25,800 levels in the near term,” said Jain.
Amruta Shinde said that the overall market remains in a consolidation phase, with traders adopting a cautious stance ahead of key global and domestic cues. “A sustained move above 25,700 will be essential to revive bullish momentum, while failure to hold above the 25,500 zone could invite further weakness in the near term.”
Bank Nifty Prediction
Bank Nifty index ended 274.40 points, or 0.47%, lower at 57,827.05 on Tuesday, and formed a small bear candle which remained enclosed inside the previous session’s high-low range, highlighting consolidation amid stock specific action.
“Bank Nifty index is still holding above the previous breakout point of 57,630. If the index manages to defend 57,630, then a short-term relief rally could be possible, but a decisive break below 57,630 could lead to further weakness. On the higher side, 58,580 will act as a strong hurdle for the index,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that the index closed just below the upper Bollinger band, reflecting a phase of consolidation rather than exhaustion after the recent rally.
“The support for the Bank Nifty index is placed around 57,600 – 57,500, followed by a secondary base near 57,300. On the upside, resistance is seen at 58,150 – 58,300, and a close above this zone could open the path toward the all-time high of 58,577. As long as the index holds above 57,400, the broader trend remains positive; however, short-term volatility and minor corrective moves cannot be ruled out,” said Mehra.
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.