The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday, tracking a mixed trend in global markets, as investors remain cautious on uncertainty over the US-Iran peace deal.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 23,882 level, a discount of nearly 97 points from the Nifty futures' previous close.
On Tuesday, the Indian stock market ended lower amid profit booking, with the benchmark Nifty 50 closing below 24,000 level.
The Sensex fell 479.26 points, or 0.63%, to close at 76,009.70, while the Nifty 50 settled 118.00 points, or 0.49%, lower at 23,913.70.
Here's what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex faced resistance near the 76,600 - 76,700 zone and witnessed profit booking from higher levels, indicating that traders remain cautious near resistance areas.
"Sensex closed near the day's low, reflecting weak short-term sentiment and lack of follow-up buying at higher levels. Immediate support is now placed around 75,400 - 75,700, while resistance is seen near 76,700 - 77,000. Sustaining above the support zone may keep the broader structure stable, whereas a decisive breakout above resistance could revive fresh bullish momentum in the coming sessions," said Hitesh Tailor, Technical Research Analyst at Choice Equity Broking.
According to him, the overall market bias remains cautiously positive as Sensex continues to hold above important support levels despite profit booking at higher zones. However, closing near the day's low suggests that traders may remain selective and cautious in the near term.
"As long as Sensex sustains above the 75,400 - 75,700 support range, the broader undertone may remain stable with stock-specific trading opportunities," said Tailor.
Nifty Options Data
In the derivatives segment, significant call writing was observed at the 24,000 and 24,100 strikes, while put writing was concentrated at the 23,900 and 23,700 strikes, indicating immediate resistance near higher levels while support continued to remain around lower strikes.
Nifty 50 Prediction
Nifty 50 index formed a bearish candlestick pattern on the daily chart, signaling lack of follow through buying to previous sessions strong up move.
"We believe that the 20-day SMA (Simple Moving Average) at 23,875 and 23,850 would act as crucial support zones for day traders. As long as Nifty 50 is trading above these levels, the uptrend remains intact. On the higher side, 24,100 could be the immediate resistance zone for the bulls. A dismissal of this level could push the Nifty 50 up to 24,200 - 24,250," said Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the flip side, he believes a break below 23,850 could lead the Nifty 50 index to slip towards 23,700 - 23,600. The intraday market texture is non-directional, hence, he advised that level-based trading would be the ideal strategy for day traders.
Ajit Mishra, SVP, Research, Religare Broking noted that the lack of follow-through buying in the Nifty 50 after the breakout above the 24,000 mark reaffirms the cautious undertone and expiry-related positioning. He expects choppiness is likely to continue on Wednesday as well due to the monthly expiry at the BSE.
"Immediate support is now placed near the 23,800 level, while the 24,300 - 24,500 zone may act as the next resistance band. Amid the prevailing scenario, we continue to maintain a positive yet cautious stance and recommend focusing on quality stocks across sectors while keeping a close check on position sizing," said Mishra.
Bank Nifty Prediction
Bank Nifty index ended 200.75 points, or 0.36%, lower at 55,092.90 on Tuesday, forming a small candlestick pattern on the daily chart, indicating some profit booking after the sharp two-day rally.
"Bank Nifty failed to sustain above its 50-day EMA after closing above the same in the previous session. Going ahead, the immediate resistance for Bank Nifty is placed in the 55,500 - 55,600 zone. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 56,000, followed by 56,400 in the short term," said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.
According to him, on the downside, the immediate support for Bank Nifty is placed in the 54,700 - 54,600 zone.
Vatsal Bhuva, Technical Analyst at LKP Securities highlighted that the overall undertone remains positive as buying interest emerged near the 55,000 zone, helping the Bank Nifty index sustain above this crucial level on a closing basis.
"Technically, further recovery towards 56,200 levels cannot be ruled out in the coming sessions. Immediate support is placed at 54,800, while resistance is seen at 55,800 and 56,200 levels. Positional support stands at 54,500, and the bullish bias remains intact as long as the Bank Nifty index holds above this mark," said Bhuva.
Report by Mint
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of us. We advise investors to check with certified experts before making any investment decisions.
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