The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to see a muted opening on Tuesday, tracking mixed global market cues, as investors remain cautious and await the key details on the US-Iran peace deal.
The trends on Gift Nifty also indicate a flat start for the Indian benchmark index. The Gift Nifty was trading around 23,932 level, a premium of nearly 15 points from the Nifty futures’ previous close.
On Monday, the ended sharply higher after the US-Iran peace deal announcement, with the benchmark Nifty 50 closing above 23,800 level.
The Sensex surged 736.38 points, or 0.97%, to close at 76,264.33, while the Nifty 50 settled 231.00 points, or 0.98%, higher at 23,853.90.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a small-bodied bearish candle on the daily chart, indicating profit booking after the recent sharp up move.
“We are of the view that for Sensex, 76,000 and 75,700 would act as crucial support zones. As long as the index is trading above these levels, the bullish trend is likely to continue. On the higher side, 76,800 and 77,000 remain key resistance levels for the bulls. However, if falls below 75,700, sentiment could change,” 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, the highest Call Open Interest was concentrated at the 23,900 and 24,000 strikes, while significant Put Open Interest at the 23,900 and 23,800 strikes suggests a strong support base near lower levels.
Nifty 50 Prediction
Nifty 50 index formed a bearish candle on the daily chart after a sharp gap-up opening, indicating selling pressure at higher levels and an inability to sustain above the 24,000 zone.
“A small red candle was formed on the daily chart with a gap up opening, which indicates an upside breakout of the key resistance of the down sloping trend line at 23,750. Monday’s opening up gap could be considered as a bullish breakaway gap, which is normally formed near important bottom reversal. This is a positive indication,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend of continues to be positive, and a sustainable move above the resistance of 24,100 levels could open the next upside target of 24,500 in the near term. Immediate support is placed at 23,650.
Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse noted that the Nifty 50 index reclaimed its short-term 50-DMA, placed around 23,750, which is now expected to provide immediate support.
“A decisive breakout above 24,000 could trigger the next leg of the rally towards 24,300. The broader market structure remains positive, and a buy-on-dips strategy is advisable as long as the Nifty 50 index holds above 23,200. Momentum indicators also support the bullish view, with the MACD generating a fresh buy crossover on the daily chart,” said Jain.
Meanwhile, India VIX declined 3% to close near the 14 level, and any further moderation in volatility is likely to strengthen the positive market sentiment.
Mayank Jain, Market Analyst, Share.Market by PhonePe said that the technical support for Nifty 59 lies at 23,500 – 23,600 zone, while resistance is seen at 24,250 – 24,350 levels.
“Monday’s low comfortably held above this cluster, making the 23,500 – 23,600 structural band the primary cushion against any further correction. On any bounce, the Nifty 50 index will face a stiff roadblock as it approaches the 24,250 – 24,350 supply zone,” he added.
Bank Nifty Prediction
Bank Nifty index ended 384.00 points, or 0.68%, higher at 57,198.80 on Monday, forming a bearish candlestick pattern with a higher high and a lower low and a bullish gap below its base, signaling positive bias.
“Bank Nifty continues to trade comfortably above all its key moving averages, highlighting the strength of the prevailing uptrend. The daily RSI is placed above the 60 mark and remains in a rising trajectory, indicating sustained positive momentum. Going ahead, the zone of 57,700 – 57,800 is likely to act as an immediate hurdle for the index. A decisive move above 57,800 could trigger a fresh round of buying, paving the way for an upside rally towards the 58,500 level in the short term,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
On the downside, he believes the zone of 56,800 – 56,700 remains a crucial support area for , and holding above this range will be essential to maintain the positive bias.
Bajaj Broking Research expects the Bank Nifty index to maintain overall positive bias and head towards 58,300 levels in the coming sessions being the measuring implication of the last four-week range breakout (52,700 – 55,500).
“Bank Nifty index sustaining above 55,500, will keep the overall bias positive and any dips should be viewed as buying opportunities. Only a decisive breach below the 55,500 support level would negate the positive outlook,” 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.