15/10/25, The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday, amid mixed global market cues, and tracking the trends in the Gift Nifty.

 

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 25,287 level, a premium of nearly 81 points from the Nifty futures' previous close.

On Tuesday, the Indian stock market closed in the red, with the benchmark Nifty 50 slipping below 25,200 level.

The Sensex dropped 297.07 points, or 0.36%, to close at 82,029.98, while the Nifty 50 settled 81.85 points, or 0.32%, lower at 25,145.50.

Here's what to expect from Nifty 50 and Bank Nifty today:

Nifty OI Data

In the derivatives segment, the highest Nifty Call Open Interest (OI) was seen at the 25,200 strike, indicating strong resistance, while the maximum Put Open Interest was concentrated around the 25,000 levels, marking key support zones for the index in the near term, said Hardik Matalia, Derivative Analyst - Research at Choice Equity Broking Private Limited.

Nifty 50 Prediction

Nifty 50 formed a bearish candle on the daily chart, resembling a bearish engulfing pattern.

"A long bear candle was formed on the daily chart with minor lower shadow. Tuesday's negative candle has engulfed the small positive candle of Tuesday. This is not a good indication and signals some more consolidation or minor weakness in the short term. Daily 10 and 20 period EMA has acted as a support for the market on Tuesday. The next lower supports to be watched are around 25,000 - 24,900 levels," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

Nilesh Jain, Head - Technical and Derivatives Research Analyst (Equity Research), Centrum Broking Ltd. noted that the Nifty 50 index found support near its 21-DMA at 25,060 and rebounded sharply to close above the 25,100 level.

"At present, Nifty 50 appears to be consolidating within a range of 25,000 - 25,300, which are acting as key support and resistance levels respectively. A decisive breakout above 25,300 would be required to trigger the next leg of the upmove," said Jain.

Dr. Praveen Dwarakanath, Vice President of Hedged.in said that the Nifty 50 index has immediate resistance at the 25,350 level and support at the 25,050 level.

"Although yesterday's candle engulfed the gains of the last three days, it did not break the support, indicating the strength of the bulls. The talks between the US and China on the trade war can reduce international tensions, which could be a reason for a possible rally from current levels," said Dwarakanath.

Bank Nifty Prediction

Bank Nifty index declined 128.55 points, or 0.23%, to close at 56,496.45 on Tuesday, forming a small-bodied bearish candlestick with a long lower shadow on the daily chart.

"Technically, Bank Nifty index continues to trade above its crucial moving averages, indicating underlying resilience. The daily RSI remains in the bullish zone, suggesting that momentum is still intact and the index may attempt to stabilize or rebound in the near term. Going ahead, the zone of 56,800 - 56,900 will act as a crucial hurdle for the index. Any sustainable move above the level of 56,900 will lead to a sharp upside rally upto the 57,500 level. While, on the downside, the zone of 56,300 - 56,200 will act as important support for the index," said Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities.

Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd. highlighted that the Bank Nifty index formed a bearish Harami candlestick pattern on the daily scale, indicating selling pressure at higher levels.

"On the downside, the major support for the Bank Nifty index is placed near 55,800, while resistance is placed near 57,000. Overall, we expect Bank Nifty to consolidate within the 55,800 - 57,000 range with positive bias in the short term," said Yedve.

Bajaj Broking Research expects the Bank Nifty index to consolidate in the range of 55,600 - 57,000 in the coming sessions, thus forming a base for the next leg of up move.

"Bank Nifty index has immediate resistance at 57,000 levels. A move above the same will open further upside towards all time high placed around 57,600 levels. Key support is placed at 55,500 - 55,700 levels being the confluence of the 20 days EMA, bullish gap area of 6 October and recent breakout area," said Bajaj Broking Research.