The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday, tracking mixed global market cues.
The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 24,106 level, a premium of nearly 37 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market ended lower, with the Nifty 50 slipping below 24,000 level.
The Sensex declined 416.72 points, or 0.54%, to close at 76,886.91, while the Nifty 50 settled 97.00 points, or 0.40%, lower at 23,995.70.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex is currently trading in a consolidation phase after recent volatility, reflecting indecisiveness among market participants.
“Immediate support for Sensex is placed in the 76,300 – 76,400 zone, which may act as a key demand area on declines. On the upside, resistance is seen around 77,300 – 77,500, where supply pressure is likely to emerge and may cap further upside. The near-term outlook remains cautious with a slight negative bias, as intermittent selling pressure continues to persist,” said Hitesh Tailor, Technical Research Analyst at Choice Equity Broking.
While selective buying is visible, ongoing geopolitical uncertainties and global market cues may keep volatility elevated, limiting sharp directional moves in the short term, he added.
Nifty Options Data
In the derivatives segment, notable call writing was observed at the 24,100 and 24,200 strikes, while put writing was concentrated at the 24,000 and 23,900 levels, indicating a near-term trading range for the Nifty 50 index.
Nifty 50 Prediction
Nifty 50 index has formed an inverted hammer on the daily chart, indicating hesitation after the recent move.
“A small red candle was formed on the daily chart with minor upper shadow. Technically, this market action indicates a range bound action in the market with weak bias. The short-term uptrend status remains intact and Nifty 50 seems to have formed a higher bottom at 23,813 on 24th April,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, a decisive move above the immediate resistance of 24,200 could bring bulls back into action again. However, immediate support is placed at 23,800 levels.
Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse Ltd. noted that the Nifty 50 index encountered resistance at its 50-DMA around the 24,200 mark and formed a small-bodied bearish candle with an upper shadow.
“Despite this, it managed to hold above the 24,000 level on a closing basis, which continues to act as a key psychological support. Going ahead, volatility is likely to persist. As long as the Nifty 50 index sustains above 23,800, a pullback towards the 24,200 level can be expected. However, a decisive break below 23,800 may lead to further downside, with the index potentially drifting towards the 23,500 mark,” said Jain.
Bank Nifty Prediction
Bank Nifty index plunged 863.95 points, or 1.54%, to close at 55,400.35 on Tuesday, forming a sizable bearish candlestick pattern with a lower high and a lower low, signaling continuation of the corrective decline for the fifth session.
“Going ahead, the immediate support for Bank Nifty is placed in the 54,900 – 54,800 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 54,400, followed by 54,000 in the short term. On the upside, the zone of 55,900 – 56,000 zone is likely to act as an immediate resistance,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Bajaj Broking Research expects the Bank Nifty index to extend consolidation in the broad range of 54,500 – 57,500 amid stock specific action as we progress through the quarterly earning session of the banking stocks.
“Within the consolidation only a move above 56,475 will open further upside towards the 57,000 and 57,500 levels in the coming sessions. From a short-term perspective, support is placed in the range of 54,500 – 54,000 zone, being the confluence of the recent low and 38.2% retracement of the last 3 weeks pullback (49,955 – 57,456),” 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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