The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Friday, tracking weak cues from global markets, amid worries over escalating US-Iran war.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,295 level, a discount of nearly 87 points from the Nifty futures’ previous close.
On Thursday, the ended lower amid profit booking, with the Nifty 50 holding above 24,300 level.
The Sensex dropped 114.00 points, or 0.15%, to close at 77,844.52, while the Nifty 50 settled 4.30 points, or 0.02%, lower at 24,326.65.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a small candle on the daily charts and non-directional intraday activity, indicating indecisiveness between the bulls and the bears.
“For day traders, 77,700 and the 20-day SMA (Simple Moving Average) or 77,200 would act as key support zones. As long as trades above these levels, the bullish sentiment is likely to continue. On the higher side, 78,400 – 78,600 would be the immediate resistance for the bulls,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the flip side, if Sensex falls below the 20-day SMA or 77,200, he believes the uptrend could become vulnerable, and below these levels, traders may prefer to exit their long positions.
Nifty Options Data
In the derivatives segment, notable call writing was observed at the 24,400 and 24,500 strikes, while put writing was concentrated at the 24,300 and 24,200 levels, indicating a broadly range-bound setup with immediate support at lower levels.
Nifty 50 Prediction
Nifty 50 index formed a small bearish candlestick pattern with shadows in either direction, signaling consolidation amid stock specific action.
“A small red candle was formed on the daily chart with minor upper shadow. Technically, this market action indicates choppy movement at the crucial hurdle of 24,400 levels. This range bound movement or consolidation could eventually result in an uptrend continuation in the near term,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend of Nifty 50 continues to be positive, and a sustainable move above 24,400 could open more upside towards 24,600 and next 2,4800 in the near term. Immediate support is placed 24,200 levels.
Rajesh Bhosale, Technical Analyst, Angel One noted that as the index has approached the April swing high coinciding with the 89 EMA, some consolidation is being witnessed at higher levels.
Considering the broad-based buying visible across the market, he expects Nifty 50 to surpass the 24,600 hurdle soon, which could then pave the way towards the 25,000 – 25,100 zone, a psychological level that also coincides with the 200 DMA.
“In line with the positive undertone, traders are advised to continue with a buy-on-dips approach. Immediate support is seen in the 24,100 – 24,000 zone. Traders should closely monitor these levels and structure trades accordingly,” said Bhosale.
That said, the real strength continues to lie in the broader market space, and a stock-specific approach remains the preferred strategy as outperformance is likely to continue in selective counters, he added.
Bank Nifty Prediction
Bank Nifty index ended 66.35 points, or 0.12%, higher at 56,047.40 on Thursday, forming a Doji candle on a daily scale, which suggest indecisiveness.
“Looking ahead, the zone of 56,400 – 56,500 is expected to act as a key resistance for the index. A sustainable move above the 56,500 level would be critical and could trigger a sharp upside rally, with immediate targets placed at 57,200, followed by 58,000 in the short term,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
On the downside, the range of 55,600 – 55,500 is likely to provide immediate support and act as a cushion against any short-term corrective moves, he added.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that the Bank Nifty index is now holding above the SMA on a closing basis, indicating a positive outlook. The index is positioned between the middle Bollinger Band and the upper band, leaving room for further upside if the index sustains above current levels.
“On the hourly chart, the Bank Nifty index remains above the Supertrend. The RSI is placed near 53, sustaining above the neutral zone. The MACD remains in positive territory, with the histogram holding steady. On the upside, the 56,350 – 56,500 zone remains the immediate resistance band. On the downside, the 55,800 – 55,500 zone remains the immediate support band,” 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.