The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday, despite mixed cues from global markets.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 26,058 level, a premium of nearly 72 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market ended higher, extending its rally for the third consecutive session, with the benchmark Nifty 50 closing above 25,900 level.
The Sensex rose 208.17 points, or 0.25%, to close at 84,273.92, while the Nifty 50 settled 67.85 points, or 0.26%, higher at 25,935.15.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex formed a Doji candle pattern on the daily charts, indicating indecisiveness between the bulls and bears.
“We are of the view that the short-term market outlook remains positive, but there could be a quick intraday dip if Sensex slips below 84,100. Below this level, the index could retest the levels of 50 day SMA (Simple Moving Average) or 83,700 – 83,500. On the higher side, 84,500 would be the immediate resistance zone for the bulls,” said Shrikant Chouhan, Head Equity Research, Kotak. Securities.
He believes a successful breakout above 84,500 could push Sensex up to 84,800 – 85,000 levels.
Nifty OI Data
In the derivatives segment, notable put writing at the 25,900 strike and heavy call writing at the 26,000 strike point to a narrow near-term trading range. Overall, the market setup favors a buy-on-dips strategy near key support levels, while traders may wait for a decisive breakout above resistance zones before initiating fresh directional positions, said Hitesh Tailor, Research Analyst – Research at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 formed a Doji-like candle on the daily chart, reflecting indecision among market participants.
“A small red candle was formed on the daily chart with minor upper and lower shadow. Technically, this market action signals a formation of high wave type candle pattern, which echoes minor volatility in the market at the highs,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying trend of Nifty 50 continues to be positive amid range bound movement, and a decisive move above the resistance of 26,000 levels could open more upside towards 26,350 levels in the near term. Immediate support is placed at 25,800.
Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse Ltd. said that the 50-DMA, placed around 25,790, is acting as a crucial support, and as long as Nifty 50 holds above this level, the gradual upward momentum is likely to continue towards 26,000.
“A decisive breakout above 26,000 could trigger short covering and propel the index towards 26,200. Meanwhile, India VIX declined sharply by 3% to slip below 12, and any further easing in volatility would continue to support bullish sentiment,” said Jain.
Bank Nifty Prediction
Bank Nifty index eased 42.95 points, or 0.07%, to close at 60,626.40 on Tuesday, forming a small body candle on the daily chart, which suggests a lack of commitment from both bulls and bears, but continues to hold above all key moving averages.
“Going ahead, the zone of 60,900 – 61,000 will act as an immediate hurdle for the Bank Nifty index. Any sustainable move above 61,000 will lead to a further upside rally upto the 61,500, followed by 62,000 in the short-term. On the downside, the zone of 60,100 – 60,000 will act as crucial support for the index,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
Om Mehra, Technical Research Analyst, SAMCO Securities noted that the Bank Nifty index is holding comfortably above the Ichimoku cloud, confirming trend stability. The index remains above the Tenkan-sen and Kijun-sen, suggesting consolidation within an ongoing uptrend rather than a reversal.
“The RSI is placed near 58, indicating steady strength. The MACD continues to improve, remaining in positive territory. Nifty Bank is placed near the upper Bollinger Band, which is acting as a short-term resistance around 60,800, while the main hurdle remains at 61,000. The index is showing a pause following the recent upside move,” said Mehra.
He expects Bank Nifty index to remain bullish as long as it holds above 59,900 level.
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.
