The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a cautious note on Thursday, amid mixed global market cues over the US-Iran war.
The trends on Gift Nifty also indicate a flat start for the Indian benchmark index. The Gift Nifty was trading around 24,460 level, a premium of nearly 13 points from the Nifty futures’ previous close.
On Wednesday, the Indian stock market ended sharply higher, with the Nifty 50 closing above 24,300 level.
The Sensex surged 940.73 points, or 1.22%, to close at 77,958.52, while the Nifty 50 settled 298.15 points, or 1.24%, higher at 24,330.95.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a long bullish candle on the daily charts, and after a long time, it succeeded in closing above the 77,500 resistance mark, which is largely positive.
“We are of the view that the uptrend formation is likely to continue in the near future. For day traders, 77,500 and 77,300 would be crucial support zones. As long as Sensex is trading above these levels, the uptrend wave is likely to continue. On the higher side, the rally could extend till 78,300 – 78,500,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
However, he believes the uptrend would become vulnerable below 77,300, and traders may prefer to exit their long positions.
Nifty Options Data
In the derivatives segment, significant call writing was observed at the 24,500 and 24,600 strikes, while put writing was concentrated at the 24,200 and 24,100 levels, indicating a positive bias with strong support at lower levels.
Nifty 50 Prediction
Nifty 50 index formed a positive hammer-like candlestick pattern on the daily timeframe, indicating strong buying interest at lower levels and the presence of demand near key support zones.
“A long bull candle was formed on the daily chart that has broken above the triangle type pattern and closed higher. Nifty 50 is currently placed at the edge of moving above the hurdle of 24,300 levels. A sustainable move above this resistance could open further upside towards the next upside of 24,600 – 24,800 levels in the near term. Immediate support is placed at 24,200,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse Ltd. noted that the Nifty 50 index has established a strong support zone around 24,000, which aligns with both the 21-DMA and 50-DMA.
“Additionally, Nifty 50 has broken out of a symmetrical triangle pattern on the daily chart, indicating a positive shift in the short-term structure with potential upside towards 24,500 levels. On the volatility front, India VIX declined sharply by 7%, slipping below the 17 mark to a one-month low. Continued easing in volatility is likely to further support the ongoing bullish momentum,” said Jain.
Bank Nifty Prediction
Bank Nifty jumped 1,434.00 points, or 2.63%, to close at 55,981.05 on Wednesday, forming a sizeable bullish candle with a prominent lower wick, indicating buying interest at lower levels.
“Bank Nifty index had been consolidating within the 55,602 – 54,222 range over the past three sessions and has now delivered a decisive breakout above this zone. Importantly, it also closed above its 20-day EMA for the first time, supported by strong volumes, since April 27, signaling improving momentum,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
According to him, the immediate resistance for Bank Nifty is placed in the 56,300 – 56,400 zone, and any sustainable move above this zone could result in the index extending its pullback towards 56,700, followed by 57,000 in the short term.
“On the downside, the immediate support for Bank Nifty is placed in the 55,600 – 55,500 zone,” said Shah.
Bajaj Broking Research highlighted that the Bank Nifty index generated a breakout above the upper band of the falling channel containing the last nine sessions corrective decline signaling resumption of up move.
“Bank Nifty index is currently placed around the last week high of 56,475. A follow through strength above the same will open further upside towards 57,500 levels in the coming weeks. Failure to move above 56,475 will signal extension of the recent consolidation in the range of 54,000 – 56,475,” said the broekrage firm.
Bank Nifty index has key support around 54,000 levels being the confluence of the recent low and 38.2% retracement of the last 3 weeks pullback (49,955 – 57,456), it 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.
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