The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Tuesday, tracking weak global market cues amid escalating US-Iran war in the Middle East.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,047 level, a discount of nearly 159 points from the Nifty futures’ previous close.
On Monday, the ended higher, but off-highs, with the benchmark Nifty 50 closing above 24,100 level.
The Sensex rallied 355.90 points, or 0.46%, to close at 77,269.40, while the Nifty 50 settled 121.75 points, or 0.51%, higher at 24,119.30.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex witnessed profit booking at higher levels, but managed to close above the 77,000 mark, which is largely positive.
“We are of the view that the short-term texture of the market is non-directional and is likely to remain so in the near future. For day traders now, the 77,000 level and the 20-day SMA (Simple Moving Average) will act as key support zones. Above these levels, could continue its positive momentum towards 77,700 – 78,000,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the flip side, below the 20-day SMA or 76,800, Sensex could retest the levels of 76,500 – 76,300, he added.
Nifty 50 Prediction
Nifty 50 index formed a small bullish candle with a long upper shadow, highlighting intraday volatility as the index consolidates with positive bias around the 20 days EMA.
“A small bullish candle was formed on the daily chart with long upper shadow. Technically, the market has been moving within a high low range of 23,800 – 24,300 levels. After bouncing back from the lower range recently, Nifty 50 slipped into weakness from near the overhead resistance of 24,300 on Monday,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend for remains positive with high volatility, and a decisive move only above 24,300 could possibly open more upside towards 24,600 – 24,800 levels in the near term.
“Any failure to sustain the highs could result in further consolidation or minor weakness in the short term,” said Shetti.
Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse Ltd. noted that the immediate psychological support for Nifty 50 is seen at 24,000, followed by the 21-DMA at 23,900.
“A decisive breakout above 24,200 is essential to extend the upmove towards 24,500 levels. On the volatility front, the index eased by nearly 1% over the week to close around 18, and any further cooling in volatility could lend support to bullish momentum. The broader structure remains positive as long as the Nifty 50 holds above 23,800, though some near-term consolidation cannot be ruled out,” said Jain.
Bank Nifty Prediction
Bank Nifty index ended 15.15 points, or 0.03%, higher at 54,878.50 on Monday, forming a thin bodied candle with a clear upper wick, reinforcing the rejection at higher levels.
“The selling pressure coincided with the 20-day EMA, and the Bank Nifty index’s failure to sustain above this key short-term moving average suggests underlying weakness in the near term. Going ahead, the immediate support for Bank Nifty is placed in the 54,400 – 54,300 zone. Any sustainable move below this zone could result in extending its weakness towards 53,900, followed by 53,500 in the short term,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
On the upside, he believes that the zone of 55,300 – 55,400 zone is likely to act as an immediate resistance.
Bajaj Broking Research expects the Bank Nifty index to extend consolidation in the broad range of 54,000 – 57,500 amid stock specific action as we progress through the quarterly earning session of the banking stocks.
“Within the consolidation a move above Monday’s high of 55,602 will signal extension of the pullback towards the 56,500 levels. Bank Nifty index has immediate support is placed in the range of 54,500 – 54,000 zone, being the confluence of the recent low and 38.2% retracement of the last 3 weeks pullback (49,955 – 57,456),” said the brokerage firm.
A breach below the key support area of 54,000 will signal extension of the decline towards 52,500 levels being the gap area of the April 8, 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.