The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat on Tuesday, tracking mixed cues from global markets as investors remain cautious over the US-Iran peace talks.
The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading around 24,057 level, a discount of nearly 6 points from the Nifty futures’ previous close.
On Monday, the ended sharply higher amid buying across the board, with the benchmark Nifty 50 closing above 24,000 level.
The Sensex jumped 1,073.61 points, or 1.42%, to close at 76,488.96, while the Nifty 50 settled 312.40 points, or 1.32%, higher at 24,031.70.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex managed to reclaim the 76,000 mark and closed near the day’s high, which reflects improving short-term momentum.
“For trend-following traders, the 20-day SMA or 76,000 would act as a key support zone. Above this, could continue positive momentum towards 77,000 – 77,200. On the flip side, if the level of 76,000 is breached, the uptrend would become vulnerable,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Below this level, he advises traders to exit their long positions.
Nifty Options Data
In the derivatives segment, significant call writing was observed at the 24,200 and 24,300 strikes, while put writing was concentrated at the 24,000 and 23,900 levels, indicating immediate support shifting higher with resistance near upper levels.
Nifty 50 Prediction
Nifty 50 index formed a strong bullish candlestick pattern on the daily timeframe after sustaining above the crucial 24,000 level.
“A long bull candle was formed on the daily chart with a gap-up opening. Technically, this market action signals a sustainable breakout of the crucial range movement. This is a positive indication and signals continuation of upside momentum for the short term,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the is now advancing towards the next resistance of the previous opening down gap of 8th May at 24,126 levels and further resistance is placed around 24,300 levels for the short term. Immediate support is placed at 23,850.
Sachin Gupta, VP – Research, Technical Research, at Choice Broking noted that the immediate support for Nifty 50 is placed in the 23,750 – 23,800 zone, while resistance is observed in the 24,150 – 24,200 range.
“The Relative Strength Index (RSI) stands at 54.35, indicating strengthening momentum and improving bullish undertones in the market. The volatility index, India VIX, declined by 6.28% to close at 16.70, indicating easing volatility and improving confidence among market participants,” said Gupta.
Bank Nifty Prediction
Bank Nifty index ended 1,238.30 points, or 2.29%, higher at 55,293.65 on Monday, forming a strong bullish candle on the daily chart.
“Bank Nifty index closed above its 50-day EMA, indicating strengthening momentum. Going ahead, the index is likely to maintain its positive bias and could advance towards 55,800, followed by 56,300 in the near term. On the downside, the 54,900 – 54,800 zone is expected to act as a key support level,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Bajaj Broking Research highlighted that the index closed above the 20- and 50- days EMA, highlighting positive bias, and has generated a breakout above the falling supply line joining the recent highs signaling strength.
“Bank Nifty index sustaining above the Monday’s gap area will keep the bias positive and will open further upside towards 56,000 and 56,600 levels in the coming sessions. The index has immediate support at 54,000 levels while major support is placed at 53,000 – 52,500 being the confluence of the lower band of the 8th April bullish gap area and the 61.8% retracement of the previous pullback,” said the brokerage firm.
The daily stochastic is in uptrend thus supports the positive bias in the Bank Nifty index, it 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.