The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Thursday, tracking weakness in global markets, as escalating US-Iran war in the Middle East kept crude oil prices elevated and raise inflation concerns.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 23,315 level, a discount of nearly 200 points from the Nifty futures’ previous close.
On Wednesday, the ended lower, resuming its losing run, with the benchmark Nifty 50 closing near 23,400 level.
The Sensex declined 303.67 points, or 0.41%, to close at 74,346.17, while the Nifty 50 settled 77.95 points, or 0.33%, lower at 23,405.60.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a promising reversal pattern on intraday charts, and a Dragonfly Doji kind of candlestick formation on daily charts, indicating indecisiveness between the bulls and the bears.
“For day traders, 74,000 would act as a key support zone. As long as Sensex is trading above this level, the pullback formation is likely to continue. On the higher side, the index could bounce back to 74,600 and 75,000. On the flip side, below 74,000, could retest 73,700. Further downside may also continue, which could drag the index to 73,500,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
According to him, the intraday market texture is non-directional, hence, level-based trading would be the ideal strategy for day traders.
Nifty Options Data
In the derivatives segment, notable call writing was observed at the 23,500 and 23,700 strikes, while put writing was concentrated at the 23,300 and 23,400 levels, indicating immediate support around lower levels while resistance remains near the higher strikes.
Nifty 50 Prediction
Nifty 50 index formed a Dragonfly Doji candlestick pattern on the daily timeframe, indicating strong buying support emerging from lower levels after an initial phase of weakness.
“Nifty 50 has finally filled the gap on the daily chart around the 23,150 mark and witnessed a swift rebound thereafter. On the upside, the 23,550 – 23,700 zone is likely to act as an immediate resistance band, whereas a decisive break below 23,150 could trigger the next leg of the decline,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
Given the prevailing uncertainty, he continues to maintain a cautious stance and recommends a stock-specific approach with strict risk management.
Mayank Jain, Market Analyst, Share.Market by PhonePe said that the support of Nifty 50 lies at 23,150 – 23,250 zone, while resistance is placed at 23,800 – 24,000 levels.
“Wednesday’s intraday low near 23,150 now acts as the immediate critical line of defense for the bulls. If the index breaks and closes below 23,150, it will signal a fresh wave of weakness, potentially exposing the major psychological support floor at 23,000. While the immediate overhead hurdle sits at 23,500, buyers must decisively clear and sustain above this mark to reverse the current cautious bias,” said Jain.
Once crossed, the major resistance stands near the 23,800 – 24,000 band, where the Nifty 50 has faced multiple rejections in the past, he added.
Bank Nifty Prediction
Bank Nifty index ended 471.30 points, or 0.88%, higher at 54,185.95 on Wednesday, forming a bullish candle with a noticeable lower wick on the daily chart, reflecting buying interest at lower levels.
“Bank Nifty index continues to trade below key short and long-term moving averages. A strong follow-through buying move will be crucial for the index to sustain and extend its ongoing pullback. Going ahead, the immediate resistance for is placed in the 54,600 – 54,700 zone. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 55,100, followed by 55,500 in the short term,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
On the downside, he believes the immediate support for Bank Nifty is placed in the 53,800 – 53,700 zone.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that the Bank Nifty index continues to trade below its 20-day SMA, which is placed near 54,200.
“The hourly chart indicates that the index has bounced from the 53,000 zone, a level that has provided support on multiple occasions. The RSI is positioned near 47, recovering from its recent lows. Notably, a positive divergence is visible on the RSI. The MACD remains in positive territory,” said Mehra.
According to him, the immediate resistance for the Bank Nifty index is placed in the 54,500 – 54,800 zone, while support is seen around 53,700, followed by 53,500.
“The index may gain strength if it sustains above 53,600 in the coming session,” 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.