The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Thursday, tracking a fall in global markets, as tensions in the Middle East escalated, raising crude oil prices and stoking inflation fears.
The trends on Gift Nifty also indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 23,122 level, a discount of nearly 117 points from the Nifty futures’ previous close.
On Wednesday, the ended mixed, with the benchmark Nifty 50 holding above 23,200 level.
The Sensex gained 64.42 points, or 0.09%, to close at 73,983.18, while the Nifty 50 settled 27.15 points, or 0.12%, lower at 23,214.95.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed an Inverted Hammer-like candlestick pattern on the daily chart, indicating rejection at higher levels and the presence of selling pressure near resistance.
“We are of the view that 74,300 would act as an immediate resistance zone for the bulls. As long as is trading below this level, weak sentiment is likely to continue. On the downside, the index could retest the levels of 73,600 – 73,500. On the flip side, above 74,300, it could bounce back till 74,600. Further upside may also continue, which could lift Sensex to 75,000,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
According to him, the intraday market texture is volatile and non-directional, and hence, he advises level-based trading strategy for day traders.
Nifty Options Data
In the derivatives segment, significant call writing was observed at the 23,300 and 23,400 strikes, while put writing was concentrated at the 23,200 and 23,000 levels, suggesting a broader trading range with support near lower levels.
Nifty 50 Prediction
Nifty 50 index formed a gravestone doji-like candlestick pattern on the daily timeframe, indicating rejection from higher levels and indecision in the market.
“Nifty 50 index failed to cross 23,450 zones and sank lower in the next half of the session to give up its intraday gains. It formed a doji sort of a candle on the daily frame with a longer upper shadow indicating pressure and profit taking at bounce. Now, has to hold above 23,200 for an up move towards 23,450 then 23,600 zones, while support can be seen at 23,100 then 23,000 zones,” said Chandan Taparia, Head Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services Ltd.
Mayank Jain, Market Analyst, Share.Market by PhonePe noted that the Nifty 50 has support at 23,000 – 23,100 zone, while it may face resistance at 23,450 – 23,550 levels.
“The 23,100 zone remains the immediate line of defense. If the Nifty 50 index breaks and closes below the crucial 23,000 psychological floor on a daily basis, it will trigger an immediate structural breakdown, opening the floodgates for a deeper slide toward the 22,750 level. Wednesday’s failed breakout attempt confirms that the immediate overhead supply cluster stands firm at 23,450,” said Jain.
He believes the short-term trend will continue to favor a “cautious” approach until the bulls decisively clear and sustain above the 23,550 mark on a daily closing basis.
Bank Nifty Prediction
Bank Nifty ended 94.20 points, or 0.17%, lower at 55,100.30 on Wednesday, forming a small-bodied candle with a prominent upper wick on the daily chart.
“The Bank Nifty – Nifty ratio line has surpassed its previous swing high, signalling relative outperformance of banking stocks versus the benchmark index. Going ahead, the immediate support for Bank Nifty is placed in the 54,700 – 54,600 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 54,200, followed by 53,800 in the short term,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
On the upside, he believes the immediate resistance for the index is placed in the 55,500 – 55,600 zone.
Bajaj Broking Research highlighted that the Bank Nifty index continues to trade above its 20-day EMA, suggesting that the broader trend remains constructive.
“Technically, the Bank Nifty index has formed a long upper-shadow Doji candle, indicating selling pressure near higher levels and some exhaustion in bullish momentum. However, the index continues to hold above the falling trendline breakout zone, which was breached earlier with a strong bullish candle. This suggests that the recent decline is largely a profit-booking move rather than a reversal of the prevailing trend,” said the brokerage firm.
Bank Nifty witnessed profit booking from the neckline of the double bottom breakout area of 55,500 – 55,600. A decisive move above this level would confirm renewed buying momentum and open the path towards 56,000 and 56,500 levels, it added.
On the downside, immediate support is positioned at 54,000 – 53,800 being the low of the current week, said the brokerage house.
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.