The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Tuesday, tracking upbeat sentiment in the global markets.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 25,722 level, a premium of nearly 28 points from the Nifty futures’ previous close.
On Monday, the Indian stock market snapped its three-day losing streak and ended higher, with the benchmark Nifty 50 settled above 25,500 level.
The Sensex rallied 319.07 points, or 0.38%, to close at 83,535.35, while the Nifty 50 settled 82.05 points, or 0.32%, higher at 25,574.35.
Here’s what to expect from Nifty 50, and Bank Nifty today:
Nifty 50 Prediction
Nifty 50 formed a green candle with upper shadow on the daily chart, indicating profit booking at higher levels.
“A long bull candle was formed on the daily chart on Monday with upper shadow, which indicates a bounce back in the market from near the crucial supports. The overall trend of Nifty 50 remains positive and any weakness down to 25,400 – 25,300 could be a buy on dips opportunity. A decisive move above 25,700, Nifty 50 could advance towards 26,000 levels in the near term,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking noted that the Nifty 50 index invalidated the recent bearish pattern of lower highs and lower lows, closing above the 25,500 level. Nonetheless, it encountered resistance near the 21-DMA at 25,635.
“The broader market structure remains constructive, favouring a buy-on-dips approach, with immediate support placed at 25,300. A decisive breakout above 25,650 would likely pave the way for continued upward momentum toward the 25,800 level,” said Jain.
According to Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, the zone of 25,660 – 25,700 will be the crucial hurdle for the Nifty 50 index.
“A sustained move above the 25,700 mark could trigger a sharp upside rally, potentially extending towards the 25,850 level. On the downside, immediate support is seen in the 25,480 – 25,450 range. Any weakness below this support zone may invite further correction,” said Shah.
Bank Nifty Prediction
Bank Nifty index ended 60.75 points, or 0.10%, higher at 57,937.55 on Monday, forming a small green candle on the daily chart after forming a bullish engulfing pattern, indicating continued strength.
“As long as the Bank Nifty index holds above 57,150 levels, traders are advised to adopt a buy-on-dips strategy. On the upside, 58,300 and 58,580 will act as resistance points for the index. Therefore, traders are advised to adopt a buy near support and sell near resistance strategy as per the levels mentioned above,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd.
Ponmudi R, CEO of Enrich Money, highlighted that the Bank Nifty index found support around 57,300, and resistance near 58,100 remains firm.
“This phase looks more like a healthy pause than a reversal. If the Bank Nifty index sustains above 58,100, it can head toward 58,500 – 58,800, whereas a slip below 57,250 may trigger a short-term dip toward 56,800 – 56,500,” said Ponmudi R.
According to Om Mehra, Technical Research Analyst, SAMCO Securities, the Bank Nifty index continues to hold above the 9-day EMA, placed near 57,800, which is acting as a short-term support.
“The support is placed around 57,600 – 57,500, whereas the resistance is seen at 58,100 – 58,300. As long as the Bank Nifty index holds above 57,600, it may continue to consolidate within this flag pattern, and a breakout above 58,250 would be required to resume the uptrend,” said Mehra.