The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday tracking upbeat global market cues, stabilizing from a sharp fall in the previous session.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 25,669 level, a premium of nearly 69 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market ended sharply lower, weighed down by selling across the board, with the benchmark Nifty 50 closing below 25,500 level.
The Sensex crashed 1,068.74 points, or, 1.28%, to close at 82,225.92, while the Nifty 50 settled 288.35 points, or, 1.12%, lower at 25,424.65.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex formed a long bearish candle on the daily charts and a lower top formation in intraday charts, indicating further weakness from the current levels.
“We are of the view that the intraday market texture is weak, but a fresh selloff is possible only after the Sensex breaches the 200-day Simple Moving Average (SMA) or 82,000. If Sensex manages to trade above this level, it could bounce back to 82,500 – 82,800. Conversely, if it falls below 82,000, it could slip to 81,700 – 81,500,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
The current market texture is volatile; hence, level-based trading would be the ideal strategy for day traders, he added.
Nifty OI Data
In the derivatives segment, aggressive call writing at 25,500 – 25,600 and strong put writing at 25,300 – 25,400 indicate a defined trading range in the near term. Options data suggests 25,600 remains a firm resistance hurdle, while 25,300 is emerging as an immediate support base for the current expiry cycle.
“Overall sentiment has turned cautious following the sharp intraday volatility. Traders are advised to remain disciplined and selective, as the index is trading close to crucial support levels. A decisive breakout above resistance or breakdown below support will likely determine the next directional move,” said Hitesh Tailor, Research Analyst – Research at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 formed a bearish candle on the daily chart and slipped below its 21-DMA placed at 25,585 levels.
“A long bear candle was formed on the daily chart with minor lower shadow. Technically, this market action indicates a sharp weakness in the market after a lower top formation. Nifty 50 has been forming a descending triangle type pattern, which is not a good sign for bulls to sustain the highs,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the short-term trend of Nifty 50 seems to have turned down post bounce back, and the crucial lower supports to be watched are around 25,325 and immediate resistance for the short term is placed around 25,600 levels.
Nilesh Jain, VP- Head of Technical and Derivative Research at Centrum Finverse noted that the Nifty 50 index witnessed a rebound from the 200-DMA around 25,330 levels, which continues to act as a strong support zone.
“The broader structure remains sideways as long as the Nifty 50 trades within the 25,200 – 25,800 range, which is acting as immediate support and resistance respectively. Although a short-term pullback cannot be ruled out, it is unlikely to sustain at higher levels as momentum indicators and oscillators have turned negative,” said Jain.
Bajaj Broking Research said that the Nifty 50 was consolidating in the range of 25,350 – 25,900 in the last 8 sessions, and only a breakout or a breakdown below this range will signal the next direction trend. Volatility is likely to remain elevated amid uncertain global cues.
“A breach below Tuesday’s low of 25,327 will open further downside towards the 200-day EMA and the previous gap area placed around 25,100 – 25,200. On the higher side immediate resistance is placed at Tuesday high of 25,642, failure to move above the same will keep the immediate bias corrective,” said the broking house.
Bank Nifty Prediction
Bank Nifty index ended 216.95 points, or 0.35%, lower at 61,047.30 on Tuesday, forming a small-bodied bearish candle with a lower shadow on the daily chart, suggesting buying support at lower levels.
“For Bank Nifty, the immediate resistance is placed in the 61,400 – 61,500 zone. Any sustainable move above this zone could result in Bank Nifty extending its up move towards 62,000, followed by 62,500 in the short term. On the downside, the zone of 60,800 – 60,700 zone is likely to act as an immediate support,” said Sudeep Shah – Head, Technical and Derivatives Research at SBI Securities.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that on the daily chart, Bank Nifty remains comfortably above the 20-day SMA, preserving the upward trend. The upper Donchian Channel band near 61,800 remains within reach, suggesting that the index is consolidating rather than reversing.
The support for Nifty Bank is placed near 60,800, followed by 60,400,” said Mehra.
On the upside, he believes 61,400 – 61,500 remains the immediate hurdle, and a decisive close above this band could open the path towards fresh highs.
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.
