The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat on Tuesday, tracking a mixed trend in the global markets.
The trends on Gift Nifty also indicate a marginally positive start for the Indian benchmark index. The Gift Nifty was trading around 24,988 level, a premium of nearly 21 points from the Nifty futures’ previous close.
On Monday, the domestic equity market witnessed a stellar rally, with both the benchmark indices jumping nearly 1% each.
The Sensex surged 676.09 points, or 0.84%, to close at 81,273.75, while the Nifty 50 settled 245.65 points, or 1.00%, higher at 24,876.95.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex succeeded in closing above the 20-day SMA (Simple Moving Average) or 81,000, which is largely positive.
“We believe that the short-term market outlook is positive, but buy on intraday dips and sell on rallies would be the ideal strategy for day traders. On the downside, 81,000 and the 20-day SMA of 80,800 would be key support levels, while 81,700 and 82,000 could act as crucial resistance areas for the bulls. However, below 80,800, the uptrend would become vulnerable. In that case, traders may prefer to exit their long positions,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Mayank Jain, Market Analyst, Share.Market said that the next resistance for Sensex remains at the 82,000 – 81,800 range.
“The Sensex’s sharp rally brings it closer to this zone, and a decisive move above could spark further buying. On the downside, the 81,000 – 80,800 level continues to serve as strong support. A breach may trigger renewed selling,” said Jain.
Nifty OI Data
On the derivatives front, the highest Call Open Interest (OI) for Nifty is placed at the 25,000 strike, followed by 25,100, suggesting these levels may act as immediate resistance zones. On the Put side, the highest OI is seen at the 24,800 strike, followed by 24,700, highlighting strong support levels.
“This OI setup indicates that the 24,800 – 25,000 range will be crucial for Nifty’s near-term movement, and a decisive break on either side could set the tone for the next directional trend,” said Hardik Matalia, Derivative Analyst – Research at Choice Equity Broking.
Nifty 50 Prediction
Nifty 50 formed a small red candle on the daily chart with a gap-up opening and a long upper shadow.
“Technically, this market action indicates a reversal pattern of down trend. If Monday’s upside gap remains open for the next few sessions, then the said gap could be considered as a bullish breakaway gap, which is normally formed at the important bottom reversal,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Hence, he believes, the recent swing low of 24,337 of 8th August is likely to be a bottom for the Nifty 50 in the near term. The next upside target to be watched is at 25,250, while immediate support is placed at 24,700.
According to Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking Ltd, Nifty 50 formed a shooting star candlestick, a bearish reversal pattern.
“A further leg of the upmove will depend on Nifty’s ability to cross its 50-DMA, which coincides with the 25,000 mark. The overall structure remains positive, with potential upside towards 25,300 – 25,500 in the August series. Momentum indicators and oscillators have turned supportive, indicating scope for follow-up buying in the coming sessions,” said Nilesh Jain.
Mayank Jain of Share.Market noted that the immediate resistance for Nifty 50 is seen near 25,100 – 25,200, with a significant hurdle at 25,200. Nifty 50 remains well-supported around 24,700 – 24,600, and a drop below this could lead to profit-taking and volatility.
Bank Nifty Prediction
Bank Nifty index gained 393.05 points, or 0.71%, to close at 55,734.90 on Monday, forming a bearish-bodied candlestick pattern with a long upper wick, suggesting selling pressure at higher levels after an initial up move.
“Bank Nifty index remains positioned below the 20-SMA and the 50-SMA on the daily chart, which together form a resistance cluster. A decisive close above this region would be essential to establish stronger upside momentum. Until then, the rebound remains tentative and could easily slip back into consolidation,” said Om Mehra, Technical Research Analyst, SAMCO Securities.
The support for Bank Nifty remains at 55,400, followed by 55,200, while the resistance remains firm at 55,900 – 56,150, coinciding with the moving average cluster, he added.
“A sustained close above this band could unlock further upside, while failure to cross may keep the index confined within a broad consolidation range,” Mehra said.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities said that the zone of 56,000 – 56,100 will act as an important hurdle for Bank Nifty, and any sustainable move above the level of 56,100 will lead to sharp upside rally upto the level of 56,500, followed by 56,900 in the short term.
While on the downside, he added that the zone of 55,500 – 55,400 will act as crucial support for the index.