The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday, tracking a rally in global markets, amid reports of peace talks between the US and Iran.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 23,120 level, a premium of nearly 192 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market ended sharply higher amid signs of de-escalation in the US-Iran war, with the benchmark Nifty 50 closing above 22,900 level.
The surged 1,372.06 points, or 1.89%, to close at 74,068.45, while the Nifty 50 settled 399.75 points, or 1.78%, higher at 22,912.40.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex continues to trade near key lower levels, reflecting a cautious undertone with limited upside visibility in the near term.
“The 73,500 – 73,600 band acts as an immediate demand zone for where dip-buying interest may emerge on any pullback, while the 74,500 – 74,600 range stands as the immediate resistance hurdle, where upside is likely to face supply pressure and profit booking,” said Hitesh Tailor, Technical Research Analyst at Choice Equity Broking.
With a strong recovery following recent weakness, the near-term outlook turns cautiously positive. However, the sustainability of the rally will depend on Sensex holding above key support levels and witnessing consistent follow-through buying on the upside to reinforce upward momentum, he added.
Nifty 50 Prediction
Nifty 50 index formed a high wave candle with a small real body and long shadows in either direction, highlighting intraday volatility amid weekly expiry.
“A small bull candle was formed on the daily chart with upper and long lower shadow. Technically, this market action indicates a sharp bounce back in the market amidst high volatility. The negative chart pattern like lower tops and bottoms is continued and the present up move is expected to be a new lower top of the pattern, which needs to be confirmed at the highs,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, a sustainable bounce back of Tuesday could be a cheering factor for bulls to make a comeback, but the market needs to show strength by sustaining above the crucial hurdles like 23,500 – 23,600 levels to consider this as a near term bottom reversal pattern.
“Any failure to sustain the highs at the hurdle could possibly drag down to 22,600 – 22,500 levels again in the near term,” said Shetti.
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in noted that the Nifty 50 index is currently holding above key levels, indicating underlying strength in the market.
“The immediate support is placed around 22,500, which will act as a crucial zone to watch. As long as the Nifty 50 index sustains above this level, the overall bias is likely to remain positive. On the upside, 23,500 stands as an important resistance level. A sustained move above this zone could trigger fresh momentum and lead to an extension of the ongoing uptrend in the near term,” said Arora.
Bajaj Broking Research expects the Nifty 50 index to consolidate in the range of 22,400 – 23,850 in the coming sessions. While a breach below 22,400 will open further downside towards 22,100 and 21,800.
“Going ahead, a strength above Tuesday’s high (23,057) will open further pullback towards 23,400 and 23,800 levels in the coming sessions. Nifty 50 index needs to start forming higher high and higher low on a sustained basis and close above last week’s high of 23,862 to signal a pause in the current downtrend,” said the brokerage firm.
Bank Nifty Prediction
Bank Nifty index ended 1,167.90 points, or 2.27%, higher at 52,605.65 on Tuesday, forming a small-bodied candle with shadows on both sides, indicating a phase of indecision after the recent pullback.
“Going forward, the zone of 53,000 – 53,100 will act as an immediate resistance area for the Bank Nifty index. A sustained move above 53,100 could lead to further extension of the pullback rally towards the 53,600 level in the near term. On the downside, the zone of 52,200 – 52,100 is placed as a crucial support region for Bank Nifty,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that the rebound in the emerged from near the lower Bollinger Band, and the index is now attempting to move back toward the middle band.
“The RSI has moved up toward 31, recovering from oversold levels, but still reflects limited strength in momentum. On the hourly chart, the Bank Nifty index is showing a gradual improvement from lower levels. The recovery remains intact as long as 52,000 – 51,800 is protected on a closing basis. However, the bounce is approaching an important resistance zone near 53,200 – 53,500,” said Mehra.
The current move reflects a short-term relief rally, while the broader trend remains in a corrective phase, he 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.