The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Friday, tracking weak global market cues as the ongoing US-Israel-Iran war continues to dent investors’ risk appetite.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,621 level, a discount of nearly 233 points from the Nifty futures’ previous close.
On Thursday, the Indian stock market ended higher amid short-covering after three sessions of sharp losses, with the benchmark Nifty 50 closing above 24,700 level.
The jumped 899.71 points, or 1.14%, to close at 80,015.90, while the Nifty 50 settled 285.40 points, or 1.17%, higher at 24,765.90.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex formed a bullish candle on daily charts, indicating that a pullback formation is likely to continue in the near future.
“For traders, 79,500 and 79,200 would act as key support zones. Above these levels, Sensex could continue its positive momentum up to 80,500 – 80,700. On the flip side, below 79,200, the sentiment could change. Below this level, traders may prefer to exit their long positions,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in said that the immediate support for is placed near 78,400, followed by a stronger support around 78,000.
“On the higher side, 81,000 and 81,200 are expected to act as important resistance zones. Sustaining above support levels could keep the bullish momentum intact,” said Arora.
Nifty Options Data
Nifty derivatives data suggests strong positioning around the 24,600 and 24,900 strikes, indicating a well-defined near-term trading band.
“Traders may continue to adopt a cautious approach, focusing on key support levels and waiting for a decisive breakout above resistance zones for fresh directional opportunities,” said Aakash Shah, Technical Research Analyst at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 index formed a bullish candlestick pattern with shadows in either direction, signaling pullback from an oversold territory after recent sharp decline.
“A long bull candle was formed on the daily chart with a gap up opening. Technically, this market action indicates a formation of a bullish candle pattern like ‘morning star’ – not a classical one. Formation of such a pattern after a reasonable down trend or at the supports indicates possible bottom reversal pattern,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the sharp downward correction in the market seems to have reversed on the upside with the formation of short-term bottom reversal pattern on Thursday.
“Further sustainable upmove from here could pull towards the next resistance of 25,000 in the near term. Immediate support is placed at 24,500,” Shetti said.
Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse Ltd. noted that the Nifty 50 index has retraced 23.6% of the entire recent decline, which is placed near the 24,800 level. However, the market is not completely out of the woods yet, and the current move should be considered only a pullback as long as Nifty 50 trades below the 25,200 level.
“On the downside, immediate support is placed at 24,600, and a break below this level could drag the Nifty 50 index further towards 24,400. The momentum indicator RSI has rebounded from the oversold territory and is currently placed near 36, indicating some recovery in momentum. Meanwhile, India VIX cooled off sharply, declining nearly 16% to slip below the 18 mark. Any further easing in volatility is likely to remain supportive of bullish sentiment,” said Jain.
Riyank Arora said that the Nifty 50 index has immediate support near 24,200, followed by a stronger base around 24,000. On the upside, 25,000 and 25,100 are likely to act as key resistance levels.
“As long as the Nifty 50 index holds above the support zone, the overall trend remains positive with a buy-on-dips approach likely to work in the current market structure. Overall, both indices continue to maintain a positive trend, and buying on dips remains the preferred strategy at current levels,” said Arora.
Bank Nifty Prediction
Bank Nifty index ended 300.60 points, or 0.51%, higher at 59,055.85 on Thursday, forming a High Wave candle on the daily chart, a pattern characterised by long upper and lower shadows. This typically signals indecision and highlights a lack of clear directional conviction among market participants at current levels.
“From a technical perspective, the zone of 59,400 – 59,500 will act as a key resistance area for index in the coming sessions. A sustained move above this band could open the door for a meaningful upside extension. On the downside, the region between 58,600 – 58,500 will serve as a crucial support zone. A decisive break below this level may trigger renewed selling pressure and generate a stronger trending move,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Bajaj Broking Research believes that volatility is likely to remain elevated amid uncertain global cues and escalating geo-political tension, while the Bank Nifty index is likely to consolidate in the range of 58,000 – 60,000 in the coming sessions.
“A breakout or a breakdown will signal the next directional movement. A breakdown below 58,000 on account of escalating will open further downside towards 57,200 levels in the coming week,” 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.