The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Friday, tracking gains in global markets and improved domestic sentiment.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 26,022 level, a premium of nearly 46 points from the Nifty futures’ previous close.
On Thursday, the Indian stock market ended marginally higher, extending gains for the sixth straight session.
The rose 130.06 points, or 0.15%, to close at 84,556.40, while the Nifty 50 settled 22.80 points, or 0.09%, higher at 25,891.40.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Additionally, on the daily charts, a bearish candle has formed, indicating temporary weakness. However, the short-term market outlook remains positive.
“For day traders, levels of 84,800 will act as key levels to watch. As long as trades below these levels, profit booking is likely to continue. On the downside, the index could slip to 84,300 – 84,000. On the upside, above 84,800, the chances of reaching 85,300 – 85,500 would increase,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Nifty OI Data
In the derivatives segment, Nifty open interest (OI) data showed the highest call writing at the 26,000 strike, while the maximum put OI was concentrated at 25,850, indicating strong resistance around 26,000.
Overall, market sentiment remains cautiously optimistic, and a decisive close above 26,000 will be crucial to revive bullish momentum and sustain the ongoing uptrend in the near term, said Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 formed a sizeable bearish candle with a minor upper shadow on the daily chart, suggesting that traders opted to book profits at elevated levels.
“A long bear candle was formed on the daily chart at the highs with minor upper shadow. Technically this market action indicates a formation of ‘bearish meeting line’ type candle pattern. This is not a good sign for bulls and any weakness from here could confirm the reversal pattern on the downside,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the overall near-term trend of remains positive, and any confirmation of negative reversal is likely to open short-term downward correction in the market, which could be a buy-on-dips opportunity.
“Immediate support is placed at 25,700. A decisive move above 26,100 could open next upside towards 26,300 – 26,400 in the near term,” said Shetti.
Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities noted that the Nifty 50 index continues to trade above its crucial moving averages, which indicates that the broader trend remains intact. Moreover, the RSI on the daily timeframe remains in bullish territory, suggesting underlying strength in momentum despite the day’s corrective move.
“Going ahead, the zone of 25,800 – 25,750 will act as an important support for the index, while, on the upside, the zone of 26,000 – 26,050 will act as a crucial hurdle,” Shah said.
Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd. highlighted that the Nifty 50 found resistance near the short-term trend line and formed a big bearish candle, indicating selling pressure at higher levels.
“On the upside, 26,100 will act as an immediate hurdle for the index, while on the downside, the recent breakout zones of 25,670 and 25,450 will act as key short-term support levels. Hence, traders are advised to book profits on bounce and wait for the index to retrace back to support levels mentioned above,” said Yedve.
Bank Nifty Prediction
Bank Nifty index closed 70.85 points, or 0.12%, higher at 58,078.05 on Thursday, forming a red candle with a long upper shadow on the daily chart, indicating selling pressure at higher levels.
“Bank Nifty index holds comfortably above all key moving averages. However, on the hourly chart, mild weakness appears. The daily RSI, hovering near 76, remains elevated in overbought territory. The MACD stays firmly in the positive zone, with its histogram still rising but at a slower pace, indicating that short-term momentum may remain moderate,” said Om Mehra, Technical Research Analyst, SAMCO Securities.
According to him, the support for remains near 57,800 – 57,700, and unless the index closes below this zone twice consecutively, the ongoing trend will continue to remain bullish.
“A buy-on-dip approach can be maintained; however, minor consolidation or mean reversion at higher levels would be considered healthy within the broader uptrend,” said Mehra.
Bajaj Broking Research expects the Bank Nifty index to consolidate with positive bias, with immediate support placed at 57,500 – 57,600 levels being the last week breakout area, while a stronger demand zone is seen near 56,800 – 56,500 levels.
“On the higher side, resistance is placed around 59,000 levels being the 138.2% retracement of the entire previous decline (57,628 – 53,561). From an oscillator perspective, the Stochastic indicator has reversed upward and is nearing the overbought territory, suggesting a possible phase of consolidation with a positive undertone,” said Bajaj Broking Research.
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.