The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday, tracking mixed global cues on cautiousness over the US-Iran war.
The trends on Gift Nifty also indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 24,303 level, a discount of nearly 90 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market ended higher on improved risk sentiment, with the benchmark Nifty 50 closing above 24,200 level.
The surged 639.82 points, or 0.82%, to close at 78,205.98, while the Nifty 50 settled 233.55 points, or 0.97%, higher at 24,261.60.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex is forming a reversal pattern on intraday charts, which supports a further uptrend from the current levels.
“We are of the view that, in the short term, Sensex remains weak, but as long as it trades above 77,500 – 77,700, a pullback move is likely to continue. On the higher side, 78,800 – 79,000 would be the immediate resistance zone for the bulls. Conversely, a breach of 77,500 could change the sentiment. Below that, the chances of hitting 77,300 – 77,200 would increase,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in, said that on the downside, 78,000 is likely to act as an important support level for Sensex, followed by a stronger support near 77,500.
“If Sensex continues to hold above these levels, a pullback towards 80,000 – 80,500 could be possible in the coming sessions. Overall, the market appears to be stabilizing after the recent correction, and holding above key support levels could lead to a gradual recovery in the near term,” said Arora.
Nifty Options Data
Nifty derivatives data suggests strong positioning around the 24,100 and 24,500 strikes, indicating a well-defined near-term trading band.
“Traders may continue to adopt a cautious approach, focusing on key support levels and waiting for a decisive breakout above resistance zones for fresh directional opportunities,” said Aakash Shah, Technical Research Analyst at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 index formed a doji candle with a long lower shadow, highlighting buying demand at lower levels for the second session in a row around the 100-day EMA.
“A small red candle was formed on the daily chart with a long lower shadow. Technically this market action signals a formation of hanging man or doji type of candle pattern (not a classical one). Formation of these candle pattern is not a bullish sign ahead and this indicates a presence of strong overhead resistance around 24,400 – 24,500 levels,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the short-term trend of is positive, but the overall medium-term remains choppy with weak bias. There is a higher possibility of the market coming down from near the crucial hurdle in the next few sessions.
Ajit Mishra – SVP, Research, Religare Broking Ltd noted that the Nifty 50 index faces a strong resistance zone around 24,400 – 24,600, a decisive move above this band is required for a sustainable recovery.
“On the downside, 23,700 – 23,900 remains the immediate support zone. Given the prevailing volatility and global uncertainties, participants are advised to remain selective and focus on disciplined risk management while taking fresh positions,” said Mishra.
Bank Nifty Prediction
Bank Nifty index rallied 931.00 points, or 1.66%, to close at 56,950.80 on Tuesday, forming a bullish candle with a higher high and a higher low, signaling pullback after a sharp decline of the last two sessions.
“Bank Nifty index is still trading below its crucial moving averages. The daily RSI has witnessed a minor pullback. Going ahead, the 200-day EMA zone of 57,400 – 57,500 will act as an important hurdle for the index. Any sustainable move above 57,500 will lead to extension of pullback rally upto the 58,100 level,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
On the downside, he added that the zone of 56,600 – 56,500 will act as immediate support for the index.
Bajaj Broking Research expects the Bank Nifty index to consolidate and form a base in the range of 55,500 – 57,700.
“The daily oscillators are placed at an oversold territory which signals a pullback in the coming sessions. Failure to hold above 55,500 levels will lead to extension of the decline towards 54,300 – 54,000 levels in the coming sessions,” 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.