The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a cautious note on Wednesday, amid a weak trend in the global markets ahead of the US Federal Reserve’s monetary policy decision.
The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 25,376 level, a premium of nearly 44 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity market ended higher, with the benchmark Nifty 50 closing above 25,200 level.
The Sensex jumped 594.95 points, or 0.73%, to close at 82,380.69, while the Nifty 50 settled 169.90 points, or 0.68%, higher at 25,239.10.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex formed a long bullish candle on daily charts and an uptrend continuation pattern on intraday charts, indicating further upward movement from the current levels.
“We are of the view that as long as Sensex is trading above 82,000 the bullish sentiment is likely to continue. On the higher side, it could move up to 82,800, with further upside potential that may lift the index to 83,100. On the flip side, below 82,000, the sentiment could change. If Sensex falls below this level, traders may consider exiting their long positions,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
The current market texture is bullish, but buying on intraday dips and selling on rallies would be the ideal strategy for day traders, he added.
Nifty OI Data
In the derivatives segment, the highest Nifty call open interest (OI) was seen at the 25,200 and 25,500 strikes, while maximum put OI remained concentrated at 25,100 and 25,000. This OI setup highlights strong resistance near 25,200. A decisive close above this zone will be critical for sustaining the bullish momentum in the near term, said Hardik Matalia, Derivative Analyst – Research at Choice Equity Broking Private Limited.
Nifty 50 Prediction
Nifty 50 index formed a sizable bull candle with a higher high and higher low, signaling extension of the up move.
“A long bull candle was formed on the daily chart which indicates a sharp upside breakout of the hurdle of previous swing high of 21st August at 25,150 levels and Nifty 50 closed higher. This is a positive indication and signal bulls are back into the scene after an upmove with choppy movement in the last 6-7 sessions,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the short-term trend of Nifty 50 continues to be positive, and having surpassed the key hurdle at 25,150, Nifty 50 could advance towards the next resistance of 25,400 – 25,500 levels in the near term. Immediate support is placed at 25,100 levels.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking Ltd. said that the overall structure remains positive with a “buy on dips” approach, and expects Nifty 50 to move towards 25,500 in the near term.
“The base has been consistently shifting higher, with immediate support now placed at 25,050. Furthermore, momentum indicators and oscillators on the daily charts remain firmly in buy mode, reinforcing prospects of continued short-term strength,” said Jain.
Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities noted that the Nifty 50 delivered a Symmetrical Triangle breakout on the daily chart, accompanied by a sizeable bullish candle, reinforcing the strength and reliability of the move.
“This pattern typically indicates a continuation of the prevailing trend, and in this case, the breakout suggests bullish momentum is gaining traction. Currently, the index is trading above both its short-term and long-term moving averages, which have started to edge higher – a classic bullish signal that reflects improving price structure and trend alignment,” said Shah.
Given the confluence of positive technical signals, Shah believes the Nifty 50 index is poised to extend its northward journey in the short term. Key upside levels to watch are 25,400, followed by 25,550. On the downside, the support zone of 25,130 – 25,100 is expected to act as a cushion and provide buying opportunities on dips.
Bank Nifty Prediction
Bank Nifty index ended 259.75 points, or 0.47%, higher at 55,147.60 on Tuesday, forming a bull candle with a higher high, signaling extension of the pullback for the tenth consecutive session.
“On the daily scale, Bank Nifty crossed the trend line resistance as well as the 34-DEMA hurdle and formed a big bullish candle, indicating a fresh breakout. As per this breakout, the index can test 55,500 – 56,000 levels in the near term. Immediate support for the Bank Nifty is placed near 54,980, where 34-DEMA is placed followed by 54,500,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates Ltd.
Thus, he advises short-term traders to adopt a buy-on-dips strategy in Bank Nifty.
Om Mehra, Technical Research Analyst, SAMCO Securities highlights that the 9-EMA has crossed above the 20-EMA, adding to the improving outlook, and the Bank Nifty index is also holding close to the midline of the Bollinger setup, which has begun to flatten after weeks of contraction, indicating scope for volatility expansion if the trend continues.
The RSI stands at 55, climbing steadily from lower levels, while the ADX at 23 suggests that directional momentum is building.
“The immediate support remains 54,700 – 54,600, acts as an immediate cushion, aligned with the 20-day moving average. The next hurdle is at 55,500 – 55,600, and a close above this zone could extend the move further. As long as Nifty Bank sustains above 54,600, the outlook stays positive,” Mehra said.
Bajaj Broking Research noted that a follow through strength in Bank Nifty index above Tuesday’s high will open further upside towards 55,500 initially and then towards the 56,000 – 56.150 levels in the coming sessions being the 61.8% retracement of the entire decline (57,628 – 53,561).
“On the downside immediate support is placed at 54,700 levels being the 20- and 100-days EMA. While key support is placed at 54,000 levels being the confluence of the last week low and key retracement of the current pull back,” said the brokerage firm.