The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday, tracking gains in global markets.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,725 level, a premium of nearly 140 points from the Nifty futures’ previous close.
On Wednesday, the Indian stock market ended sharply lower, extending its slump amid the US-Iran war jitters, with the benchmark Nifty 50 closing below 24,500 level.
The Sensex crashed 1,122.66 points, or 1.40%, to close at 79,116.19, while the Nifty 50 settled 385.20 points, or 1.55%, lower at 24,480.50.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex tested key support near 78,500 and showed a strong intraday rebound, indicating buying interest at lower levels.
“We are of the view that the short-term outlook is weak but oversold. For traders, 78,500 would act as a key support zone. If Sensex sustains above this level, the immediate resistance would be at 79,500. Above 79,500, the index could move up to 80,000 – 80,500. Conversely, a decline below 78,500 could change the sentiment,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Below this, he believes Sensex could slip to 78,000 – 77,800. The current market texture is extremely volatile and is expected to remain volatile in the near future.
Nifty OI Data
In the derivatives space, substantial put writing at the 24,400 strike alongside aggressive call writing at the 24,600 strike signals a clearly defined near-term trading band.
“Given the prevailing conditions, traders are advised to exercise caution around critical support levels and refrain from initiating fresh directional bets until a decisive breakout above resistance levels is confirmed,” said Hitesh Tailor, Research Analyst – Research at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 index formed a reasonable green candle on the daily chart with gap down opening and with upper and lower shadow.
“Technically, this market action indicates sharp selling with minor volatility. We observe meaningful upside recoveries after a sharp gap down openings in the last couple of sessions. This action could be an attempt by bulls to witness a relief rally,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend of Nifty 50 remains weak amidst global geo-political tension.
“Nifty 50 index is currently sliding down to an important support zone of around 24,300 – 24,100 (previous important swing lows and opening up gap of 12 May). Hence, there is a higher possibility of reasonable upside bounce from the lows in the near term. Immediate resistance is placed at 24,600,” said Shetti.
Ponmudi R, CEO of Enrich Money noted that the broader structure continues to reflect underlying pressure, and the Nifty 50 index continues to trade below key short-term moving averages.
“Immediate support is placed around 24,300 – 24,200, and a decisive breakdown below this region could accelerate the decline toward the 24,000 psychological level. On the upside, 24,600 acts as the immediate resistance, followed by a stronger supply zone near 24,900 – 25,000, which must be reclaimed on a closing basis to restore positive sentiment,” said Ponmudi.
Momentum indicators remain subdued, with the RSI hovering near oversold territory, while the MACD continues to remain in the negative zone, indicating that although the market appears stretched on the downside, sustained buying interest will be necessary for stabilization, he added.
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in said that the Nifty 50 has entered a strong accumulation zone between 24,571 – 24,796, with stabilization visible on charts.
“A pullback toward 25,000 – 25,100 is likely, with potential extension to 25,500 if momentum builds. The broader trend remains constructive while 24,000 holds. Overall strategy: buy on dips near major support levels,” said Arora.
Bank Nifty Prediction
Bank Nifty index slipped 1,084.40 points, or 1.81%, to close at 58,755.25 on Wednesday, forming a small bull candle with an upper shadow and a bearish gap above its head, signalling continuation of the corrective trend.
“For Bank Nifty, the immediate support is placed in the 58,200 – 58,100 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 57,700, followed by 57,300 in the short term. On the upside, the zone of 59,200 – 59,300 zone is likely to act as an immediate resistance,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Bajaj Broking Research highlighted that the Bank Nifty index retraced 80% of its previous up move, and the bias remains down below Tuesday’s gap down area (59,840 – 59,058).
“Volatility is likely to remain elevated amid uncertain global cues and escalating geo-political tension. Immediate bias remains down and traders should use intraday pullback as a selling opportunity. Bank Nifty index is likely to consolidate in the range of 58,000 – 60,000 in the coming sessions. A breakout or a breakdown will signal the next directional movement,” 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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