The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Tuesday, tracking weakness in global markets.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 25,607 level, a discount of nearly 98 points from the Nifty futures’ previous close.
On Monday, the Indian stock market ended higher, with the benchmark Nifty 50 closing above 25,700 level.
The Sensex jumped 479.95 points, or 0.58%, to close at 83,294.66, while the Nifty 50 settled 141.75 points, or 0.55%, higher at 25,713.00.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex took support near the 20-day SMA (Simple Moving Average) or 83,000, while 83,600 remains the crucial resistance zone for short-term traders.
“We believe that the 20-day SMA or 83,000 will act as an immediate reference point for day traders. As long as Sensex is trading above this level, the bullish momentum is likely to continue. On the higher side, 83,600 would be the key resistance area for the bulls. A successful breakout of 83,600 could push the index up to 84,000 – 84,200,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the flip side, he believes below 83,000, sentiment could change, and if Sensex falls below this level, it is likely to retest the levels of 82,700 – 82,500.
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in said that a sustained breakout above 84,000 may lead to an upside rally towards 85,000 and subsequently 85,500.
“On the downside, 83,000 acts as a major support zone, below which selling pressure could intensify. Overall, the market is looking relatively stable and positive. We expect it to head higher as momentum sees a spike as we approach the monthly expiry,” said Arora.
Nifty OI Data
In the derivatives segment, significant put writing at the 25,700 strike, along with aggressive call writing at 25,750 and 25,800, defines a short-term consolidation range.
“Price action reflects a bullish bias within a consolidation phase, supporting a measured positive near-term outlook and favoring buying on pullbacks while major support zones are respected,” said Aakash Shah, Technical Research Analyst at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 index formed a small-bodied bullish candle with long upper and lower shadows on the daily chart, indicating indecision at higher levels.
“A small bullish candle has been formed on the daily chart with gap up opening and with upper and lower shadow. Technically, this market action signals follow-through upmove with volatility. Presently, the market is forming consistent lower highs on the daily chart and there is a possibility of Nifty 50 finding crucial overhead resistance around 25,800 – 25,850 levels in the short term and any weakness from here could find support around 25,550 levels,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, a decisive move above the hurdle of 25,900 levels is likely to change the trend on the upside.
Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse Ltd. noted that a decisive move above 25,800 is crucial to trigger short covering, which could propel the Nifty 50 index towards 26,000.
“On the downside, immediate support is placed at the 21-DMA near 25,570. With the February monthly F&O expiry approaching, we expect heightened volatility in the index. Meanwhile, the volatility gauge India VIX has eased to 14.10, however, a sustained move below 13 is necessary for bulls to regain firm control,” said Jain.
Bank Nifty Prediction
Bank Nifty index ended 92.25 points, or 0.15%, higher at 61,264.25 on Monday, forming a bullish candle with a long upper shadow on the daily chart, indicating underlying buying support but also highlighting selling pressure at higher levels.
“Going ahead, the region of 61,500 – 61,600 will act as a major hurdle for the Bank Nifty index. A sustained breakout above 61,600 could unleash strong upside momentum toward 62,200, and further toward 62,600. On the flip side, immediate support lies in the 60,800 – 60,700 zone; holding above this zone will keep the short term structure positive, while a breakdown below it may trigger further downside pressure,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Bajaj Broking Research highlighted that the Bank Nifty index formed a high wave candle with small real body and shadows in either direction signaling consolidation amid stock specific action.
“Bias remains positive and we believe dips should be used as buying opportunity, with short term support seen at 60,500 – 60,200 levels being the confluence of the 20 days EMA and the key retracement of previous up move. Volatility is likely to remain elevated amid uncertain global cues. In the near-term, the Bank Nifty index is likely to trade in the range of 60,000 – 61,750. A decisive move beyond this range could trigger fresh directional momentum,” 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.
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