The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat on Wednesday amid a positive momentum in the global markets.
The trends on Gift Nifty also indicate a flat start for the Indian benchmark index. The Gift Nifty was trading around 26,206 level, a discount of nearly 7 points from the Nifty futures’ previous close.
On Tuesday, the Indian stock market indices extended losses for the third straight session, with the benchmark Nifty 50 closing near 26,000 level.
The Sensex cracked 503.63 points, or 0.59%, to close at 85,138.27, while the Nifty 50 settled 143.55 points, or 0.55%, lower at 26,032.20.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex formed a lower top on intraday charts, and has created a bearish candle on daily charts, which is largely negative.
“We are of the view that, intraday, the market texture is weak, but a fresh selloff is possible only if Sensex dismisses the 85,000 level. If the index manages to trade above this level, it could bounce back to 85,500 – 85,800. On the flip side, below 85,000, selling pressure is likely to accelerate,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
If Sensex falls below this level, he believes it could slip to 84,500 – 84,300.
Nifty OI Data
Nifty derivatives data highlighted aggressive call writing at the 26,100 strike and strong put OI buildup at 26,000, pointing to a narrow, range-bound setup in the near term. A sustained close above 26,300 will remain essential to revive bullish momentum in the upcoming sessions, said Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 formed a small red candle with shadows on either side on the daily chart, indicating uncertainty.
“In the near term, major resistance for the Nifty 50 index is placed at 26,325. Until the index persists below this level, any bounce should be used for profit booking. On the downside, 25,840 will act as a crucial support base, where the short term swing low is placed,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd.
Considering the overall setup, he advises traders to buy near support levels and sell near the resistance mentioned above.
Ponmudi R, CEO of Enrich Money said that the immediate resistance for Nifty 50 is now placed at 26,130 – 26,200, while the major hurdle continues to remain at 26,300, where heavy Call writing is concentrated.
“A decisive breakout above 26,300 could trigger a broader range expansion and open the path toward 26,500. On the downside, a sustained close below 26,000 may invite deeper profit-booking toward 25,900 – 25,800. However, strong Put writing at the 26,000 strike continues to act as a near-term cushion for the index,” said Ponmudi R.
Bank Nifty Prediction
Bank Nifty declined 407.55 points, or 0.68%, to close at 59,273.80 on Tuesday, forming a small red candle with a long upper shadow on the daily chart, reflecting selling pressure at elevated levels.
“We expect the Bank Nifty index to consolidate and form a base in the range of 58,500 – 60,100 in the coming sessions ahead of the RBI monetary policy outcome. A follow through strength above last Monday’s high (60,114) will open further upside towards 60,400 and then towards 61,000 levels in the coming weeks. The entire up move of the last 2 months is well channelled signaling sustained demand at elevated levels,” said Bajaj Broking Research.
According to the brokerage firm, key support for Bank Nifty index is placed at 58,300 – 58,600 levels being the confluence of the last two weeks lows and recent breakout area. Holding above the support area will keep the short-term bias positive.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities said that the 20-day EMA zone of 58,950 – 58,850 will act as important support for the Bank Nifty index.
“On the upside, the zone of 59,600 – 59,700 will act as a crucial hurdle for the index. Any sustainable move above the 59,700 level will lead to a sharp upside rally upto the 60,200 level,” said Shah.