The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a muted note Tuesday, amid cautiousness in the domestic markets.
The trends on Gift Nifty also indicate a flat start for the Indian benchmark index. The Gift Nifty was trading around 25,158 level, a discount of nearly 6 points from the Nifty futures' previous close.
On Monday, the equity market indices ended with minor losses, with the benchmark Nifty 50 closing below 25,100 level.
The Sensex fell 118.96 points, or 0.15%, to close at 81,785.74, while the Nifty 50 settled 44.80 points, or 0.18%, lower at 25,069.20.
Here's what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex formed a small bearish candle on the daily chart, indicating indecisiveness.
"The immediate support for Sensex is at 81,500 and 81,400 points. A break below these levels could lead to a test of the next support zone near 81,000. On the upside, the index faces resistance at 82,000 and 82,200 points. A convincing move above this resistance could signal a resumption of the upward trend," said Mayank Jain, Market Analyst, Share.Market (PhonePe Wealth).
Shrikant Chouhan, Head Equity Research, Kotak Securities said that non-directional intraday activity and a small bearish candle indicate indecisiveness between the bulls and the bears.
"For day traders now, 81,750 and 81,500 would act as key support zones, while 82,000 and 82,100 could serve as crucial resistance levels for the bulls. On the higher side, a successful breakout above 82,100 could push Sensex up to 82,400 - 82,500. Conversely, below 81,500, it could retest the 50-day SMA (Simple Moving Average) level or 81,200," said Chouhan.
Nifty OI Data
In the derivatives segment, Nifty open interest (OI) data showed the highest call writing at the 25,100 and 25,200 strike prices, while the maximum put OI was concentrated at the 25,000 level.
"This positioning suggests strong resistance near the 25,100 zone. Nevertheless, overall sentiment remains cautiously optimistic, and a decisive close above this resistance will be crucial to sustain bullish momentum in the near term," said Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking Private Limited.
Nifty 50 Prediction
Nifty 50 formed a Tweezer Top candlestick pattern, suggesting a phase of consolidation may be underway before the next leg higher.
"A small negative candle was formed on the daily chart with minor upper and lower shadow. Technically, this market action indicates a choppy movement in the market at the crucial resistance of 25,150 levels-previous swing high of 21st August. The present market action indicates a breather type formation after a continuous rise of 8 sessions," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the near-term uptrend of Nifty 50 remains intact and the present consolidation or weakness could be a buy on dips opportunity and eventually Nifty 50 is expected to break out of the hurdle at 25,150 levels soon. Immediate support is placed at 24,900. A sharp breakout of 25,150 could open the next upside target of 25,400 - 25,500 levels.
Mayank Jain said that Nifty 50's immediate resistance is at 25,200 to 25,250 points, and if the index manages to break and sustain above this level, it could pave the way for a move towards 25,500.
"On the downside, support is seen at 25,000 and 24,950. A fall below these key psychological levels could trigger a further correction towards 24,800," Jain said.
Dr. Praveen Dwarakanath, Vice President of Hedged.in noted that the Nifty 50 formed an insider candle with bearish bias as it reacted from the resistance near the 25,150 levels.
"The momentum indicators are in the overbought region, indicating a possible fall in the index towards its support at the 24,950 level. The index came near the upper part of the Bollinger band in a smaller time frame and got rejected, indicating weakness in the rally," said Dwarakanath.
Bank Nifty Prediction
Bank Nifty index gained 78.55 points, or 0.14%, to close at 54,887.85 on Monday, forming a doji candle near trend line resistance on the daily scale.
"From a momentum perspective, the daily RSI continues to move sideways, hovering within a neutral zone. As per RSI range shift rules, this behaviour indicates a lack of directional strength and suggests that the index is currently in a consolidation phase. Going ahead, the 50-day EMA zone of 55,100 - 55,200 will act as a crucial hurdle for the Bank Nifty index," said Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities.
Any sustainable move above the level of 55,200 will lead to a sharp upside rally upto the level of 55,600, followed by 56,000 in the short term. While, on the downside, the 20-day EMA zone of 54,700 - 54,600 will act as crucial support for the index, Shah added.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that the Bank Nifty index has managed to sustain itself above the 9-EMA and the 20-EMA, and is inching higher. The RSI has edged up to 51, reclaiming the neutral line, while the MACD has confirmed a bullish crossover with strengthening histogram bars.
"The resistance stands at the Supertrend level of 55,300, followed by the upper Bollinger Band near 55,700 in the broader view. On the downside, 54,600 remains the immediate cushion. Nifty Bank remains strong as long as it avoids a close below 54,400. The index remains in recovery mode as long as it trades above the 9- and 20-day EMA, with 55,300 - 55,400 acting as the next test zone," Mehra said.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies. We advise investors to check with certified experts before making any investment decisions.
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