The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday, tracking weak cues from global markets, amid fears of rising inflation and elevated bond yields.
The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around 23,450 level, a discount of nearly 162 points from the Nifty futures’ previous close.
On Tuesday, the ended lower, with the benchmark Nifty 50 closing below 23,650 level.
The Sensex dropped 114.19 points, or 0.15%, to close at 75,200.85, while the Nifty 50 settled 31.95 points, or 0.14%, lower at 23,618.00.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed an Inverted Hammer candle on the daily chart, suggesting indecisiveness after the recent rebound move.
“We are of the view that the short-term market texture is non-directional, and range-bound activity is likely to continue in the near future. On the higher side, 75,800 or the 50-day SMA would act as a crucial resistance zone for . While 75,000 would be the key support area for day traders, on the upside, above 75,800, Sensex could move towards 76,000 – 76,200,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Conversely, he believes if Sensex falls below 75,000, the chances of hitting 74,500 – 74,300 levels would increase.
Nifty Options Data
In the derivatives segment, significant put writing at the 23,500 strike along with aggressive call writing at the 23,700 strike indicates a likely range-bound movement in the near term.
Nifty 50 Prediction
Nifty 50 index formed a small bearish candle with a long upper shadow on the daily chart, signaling selling pressure at higher levels.
“A small negative candle was formed on the daily chart with an upper shadow. This market action indicates inability of bulls to surpass the crucial resistance at 23,800. Nifty 50 is placed within a broader high low range of around 23,800 – 23,200 levels in the last 4-5 sessions,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He expects to consolidate or decline further in the short term after declining again from near the upper range resistance around 23,800 on Tuesday. Immediate support is placed at 23,350 levels.
Sachin Gupta, VP – Research, Technical Research, at Choice Broking noted that the 23,800 – 23,850 zone continues to act as a major resistance area for Nifty 50, whereas the 23,350 – 23,400 range is expected to provide strong support.
“The daily RSI at 44.70 indicates weakening momentum and limited bullish strength. Overall, the market setup remains cautious, and traders are advised to closely monitor important support and resistance levels for further directional cues,’ said Gupta.
Bank Nifty Prediction
Bank Nifty index ended 127.85 points, or 0.24%, lower at 53,409.15 on Tuesday, forming a small-bodied candle on the daily chart, indicating lack of strong directional conviction and subdued price action.
“Despite this consolidation, the broader trend of the Bank Nifty index remains weak, as it continues to trade below its key moving averages. Adding to the negative bias, the daily RSI has slipped below the 40 mark, suggesting weakening momentum and persistent selling pressure,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Going ahead, he believes the 53,900 – 54,000 zone is likely to act as an immediate resistance, and on the downside, the 53,100 – 53,000 zone is expected to provide crucial support.
“A decisive break below the 53,000 level could further intensify selling pressure, dragging the index towards the next key support at around 52,500,” said Shah.
Om Mehra, Technical Research Analyst at SAMCO Securities highlighted that the Bank Nifty index is positioned near the 50% Fibonacci retracement level placed around 53,700, with yesterday’s close slipping below this mark. The 61.8% Fibonacci retracement at 52,820 aligns closely with the lower Bollinger Band and marks an important support zone.
“Nifty Bank remains below all its key moving averages, reflecting the significant ground the index still needs to recover before the broader structure improves. The RSI is placed around 40, hovering close to the oversold zone. The MACD remains deeply negative, with the histogram continuing to expand on the downside,” said Mehra.
According to him, on the downside, the 52,800 – 52,680 zone acts as the next support area, while on the upside, the 53,800 – 54,200 zone becomes the immediate resistance band.
“The near-term outlook remains range-bound as long as the Bank Nifty index continues to trade below all its major moving averages,” Mehra added.
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.