The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Tuesday, amid mixed cues from global markets on expectations of a US-China trade deal and US Federal Reserve interest rate cut.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 26,055 level, a premium of nearly 43 points from the Nifty futures’ previous close.
On Monday, the Indian stock market ended sharply higher, with the benchmark Nifty 50 closing above 25,900 level.
The surged 566.96 points, or 0.67%, to close at 84,778.84, while the Nifty 50 settled 170.90 points, or 0.66%, higher at 25,966.05.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a bullish candle on daily charts and a reversal formation on intraday charts, indicating a further uptrend from the current levels.
“For day traders, 84,500 would act as an immediate support zone. As long as trades above this level, the bullish sentiment is likely to continue. On the higher side, it could retest the levels of 85,000 – 85,300. On the flip side, below 84,500, we could see a quick intraday correction down to 84,200 – 84,000,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Om Ghawalkar, Market Analyst, Share.Market noted that Sensex, having breached 84,700, now eyes its next resistance at 85,000, while finding a strong support base near 84,300 and 84,000.
Nifty 50 Prediction
Nifty 50 index formed a bullish candle on the daily chart, indicating strength.
“A long bull candle was formed on the daily chart with minor upper shadow. Technically, this market action indicates an uptrend continuation pattern post minor correction. The bullish chart pattern like higher tops and bottoms is intact and the recent decline down to 25,718 levels could be considered as a higher bottom of the pattern,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend of the market continues to be positive, and Nifty 50 is expected to advance towards the key hurdle of 26,300 – 26,400 levels in the near term. Immediate support is placed at 25,700 levels.
Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd. noted that the remains below the trend line resistance and last week’s high of 26,100, which will act as a major hurdle for the index.
“On the downside, the recent breakout zone of 25,670 will serve as key support. Hence, short-term traders are advised to buy near support of 25,670 and book profits near the resistance level of 26,100. If the index manages to cross the hurdle of 26,100 levels, then it could attempt to test its all-time high which is placed near 26,280,” said Yedve.
According to Om Ghawalkar, the Nifty 50 looks positive as long as it holds above the 25,500 support level, with its next major hurdle at the 26,000 resistance mark (followed by 26,300).
Bank Nifty Prediction
Bank Nifty index ended 414.65 points, or 0.72%, higher at 58,114.25 on Monday, and formed a bullish candle with a higher high and higher low, highlighting rebound after two sessions of corrective decline.
“Going ahead, the zone of 58,500 – 58,600 is likely to act as a crucial resistance area for the index. A decisive breakout and sustained move above 58,600 could trigger a sharp upside rally towards 59,100, followed by 59,500 in the near term. On the flip side, the zone of 57,700 – 57,600 is expected to offer strong support, and any dip towards this area may attract buying interest,” said Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities.
Om Mehra, Technical Research Analyst, SAMCO Securities noted the index rebounded from the near-term support around the 57,650 zone, which aligns with the 23.6% Fibonacci retracement.
“The Bank Nifty index took support from the 9 EMA and remains well above all key moving averages, suggesting that the uptrend remains intact. The RSI at 72 signals sustained strength, while the MACD stays firmly oriented upward. The upward-sloping short-term trendline remains well defended, adding to the overall strength of the current setup,” said Mehra.
According to Mehra, the support for Bank Nifty is placed near 57,800 – 57,600, while resistance is seen around 58,300 – 58,500, and a close above this range could lead to a new all-time high.
“Dips are likely to be viewed as opportunities for accumulation within the ongoing rally,” Mehra said.
Bajaj Broking Research said that the Bank Nifty index has immediate support placed at 57,300 – 57,500 levels, being the last week breakout area, and a stronger demand zone is seen near 56,800 – 56,500 levels.
“The daily stochastic signaling consolidation likely in the coming sessions, thus forming a base for the next leg of up move. We believe the current breather should be used as a buying opportunity in quality banking stocks,” 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.