The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Friday amid mixed global market cues and escalating US-Iran tensions.
The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 25,415 level, a discount of nearly 30 points from the Nifty futures’ previous close.
On Thursday, the Indian stock market crashed, snapping its three-day winning streak, with the benchmark Nifty 50 slipping below 25,500 level.
The Sensex cracked 1,236.11 points, or 1.48%, to close at 82,498.14, while the Nifty 50 settled 365.00 points, or 1.41%, lower at 25,454.35.
Here’s what to expect from Nifty 50, and Bank Nifty today:
Nifty OI Data
In the derivatives segment, notable put writing at the 25,400 strike and heavy call writing at the 25,600 strike have created a defined short-term consolidation range.
Traders are advised to remain cautious near key support levels and wait for a decisive breakout above resistance before initiating fresh directional positions, said Hitesh Tailor, Research Analyst – Research at Choice Equity Broking Private Limited.
Nifty 50 Prediction
Nifty index formed a sizable bearish candle on the daily chart and slipped below the lower boundary of the 25,500 – 26,000 consolidation range, indicating a decisive loss of short-term momentum.
“A long-range bear candle has been formed on the daily chart (approx. 500 points high low range) that closed near the swing low of 16 February. Technically, this market action indicates a formation of ‘Bearish Engulfing’ pattern and also a faster retracement of previous four sessions range on the downside in a single session. This is not a good sign,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the short term trend of Nifty 50 has reversed down sharply on Thursday after a minor bounce back, and a slide below 25,400 could drag the index down to the next support of 25,200 – 25,100 levels in the near term.
Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse Ltd noted that Nifty 50 slipped below its key short-term moving averages and formed a bearish engulfing candlestick, indicating a potential bearish reversal.
“The immediate resistance is placed at the 100-DMA near 25,700 levels. On the downside, the crucial support of the 200-DMA is positioned at 25,310, and a decisive break below this could open further downside towards 25,100 levels. Meanwhile, India VIX surged sharply by 12% to around 13.60, and any further uptick in volatility could be a cause for concern,” said Jain.
Bank Nifty Prediction
Bank Nifty index slumped 811.25 points, or 1.32%, to close at 60,739.55 on Thursday, resulting in the formation of a large bearish candle on the daily chart.
“This price action indicates a clear shift in momentum and suggests that bulls have temporarily lost control after a strong upward stretch. Looking ahead, the 20 day EMA placed between 60,400 – 60,300 is expected to act as a key support zone for the Bank Nifty index. A breakdown below this region could accelerate the downside, exposing the index to further declines in the short term,” said Sudeep Shah, Head – Technical and Derivatives. Research at SBI Securities.
On the upside, he believes the zone of 61,100 – 61,200 is likely to serve as a crucial resistance area.
Bajaj Broking said that the 21-day EMA, placed around 60,300, emerges as the key level to watch, as the Bank Nifty index has found support near this average on multiple prior occasions.
“Immediate support is seen at 60,300, followed by 60,000. On the upside, near-term resistance is positioned at 61,500 and 61,750. In the near term, the Bank Nifty index is likely to trade within a broad range of 60,000 – 61,500, and a decisive breakout on either side could trigger fresh directional momentum,” 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.
