The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Friday, tracking a sell-off in global markets.
The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around 25,507 level, a discount of nearly 120 points from the Nifty futures’ previous close.
On Thursday, the Indian stock market ended lower for the second consecutive session, with the benchmark Nifty 50 closing near 25,500 level.
The fell 148.14 points, or 0.18%, to close at 83,311.01, while the Nifty 50 settled 87.95 points, or 0.34%, lower at 25,509.70.
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 lower top formation on intraday charts, indicating further weakness from the current levels.
“We believe that the current market texture is weak, but a fresh sell-off is possible only after the dismissal of 83,100. Below this level, could slip to 82,700 – 82,500. On the upside, above 83,700, the index could move up to 84,000. Further upside may also continue, potentially lifting Sensex to 84,300,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Nifty OI Data
In the derivatives segment, Nifty Open Interest (OI) data indicated the highest Call writing at the 25,700 strike, while the maximum Put OI was concentrated at 25,500, implying that traders expect the Nifty 50 to remain range-bound between 25,500 and 25,700 in the near term.
“Overall the market remains in a consolidation phase with a negative bias. A decisive move above 25,700 will be crucial to revive bullish momentum, while failure to hold above 25,500 could extend weakness in the short term,” said Hardik Matalia, Derivative Analyst – Research at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 formed a bearish candle on the daily chart, that indicates continued weakness.
“A long bear candle was formed on the daily chart with a long upper shadow. Technically, this market action indicates a sell on rise opportunity. Formation of upper shadows in the last 5-6 candles during downtrend signal presence of strong resistance on the rise,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend of Nifty 50 continues to be weak, and the index is now entering a crucial support zone around 25,400 levels (previous upside broken trend line resistance as per change in polarity). Immediate resistance is placed at 25,700.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking Ltd. noted that the index slipped below its immediate support at the 21-DMA, placed around 25,600, which will now act as a key resistance.
“Momentum indicators and oscillators have turned bearish with a sell crossover, suggesting that short-term weakness is likely to persist and any pullbacks may attract selling pressure. On the upside, a move above 25,800 would be needed to negate the bearish setup, while immediate support is seen near 25,350 which is the 50% retracement level of the October series rally,” said Jain.
Nifty 50 struggled to sustain above the 25,660 mark, reflecting signs of fatigue and a cautious undertone among investors, highlighted Ponmudi R, CEO of Enrich Money.
“Key support now lies in the 25,450 – 25,150 zone, while resistance is capped around 25,700 – 25,800. The short-term momentum remains weak, and a decisive move above 25,820 will be essential to rekindle buying interest. Conversely, a break below 25,500 could accelerate selling pressure, potentially dragging the index toward 25,300 or lower,” said Ponmudi R.
Bank Nifty Prediction
Bank Nifty index declined 272.80 points, or 0.47%, to close at 57,554.25 on Thursday, forming a red candle, indicating weakness.
“If the index sustains below 57,480, the weakness could extend towards the 57,000 level. 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.
Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities said that the 20-day EMA zone of 57,400 – 57,300 will act as immediate support for the Bank Nifty index.
“Any sustainable move below the level of 57,300 will lead to further correction upto 56,800 level. While, on the upside, the zone of 57,900 – 58,000 will act as a crucial hurdle for the index,” said Shah.
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.