The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday, tracking upbeat global market cues after Israel and Iran agreed for a ceasefire, ending the war.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 25,175 level, a premium of nearly 103 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity market ended higher, with the benchmark Nifty 50 closing above the 25,000 levels.
The Sensex rose 158.32 points, or 0.19%, to close at 82,055.11, while the Nifty 50 settled 72.45 points, or 0.29%, higher at 25,044.35.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
In the derivatives segment, the highest Call OI (Open Interest) is seen at the 25,200 strike, and the highest Put OI at 25,000, indicating a short-term trading range between 25,000 – 25,200 for the Nifty 50, said Mandar Bhojane, Research Analyst at Choice Broking.
Nifty 50 Prediction
Nifty 50 failed to sustain the intraday highs as it erased most of its intraday gains and closed the day off the highs.
“A reasonable negative candle was formed on the daily chart with a long upper shadow. Technically, this market action indicates false upside breakout attempt of broader high low range of the last one month around 25,200 levels. This could signal there is a possibility of some more consolidation in the short term before surging higher again,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the short-term trend of Nifty 50 remains positive amidst range movement. Further sustainable move above 25,200 – 25,300 levels could open further upside towards 25,600 for the near term. Immediate support is placed at 24,900 levels.
Om Mehra, Technical Research Analyst, SAMCO Securities, highlighted that the Nifty 50 floats above the 9-day and 20-day moving averages, which may act as a cushion during minor dips. The RSI has moved back above the 55 mark, after some exhaustion. However, it is yet to break above 60 for a clearer directional confirmation.
“The MACD histogram remains flat, but is slowly flattening, indicating a potential shift in tone. The upper Bollinger band near 25,300 continues to pose strong resistance, and a close above this level would likely open the door for a fresh directional leg. Until then, Nifty 50 may remain range-bound with support around 24,800. The India VIX cooled off by 2.92% to 13.64, indicating a drop in market nervousness and supporting the current consolidation,” said Mehra.
Dr. Praveen Dwarakanath, Vice President of Hedged.in, noted that the Nifty 50 gave a breakout above its resistance of the 25,200 level, but could not sustain the high, indicating weakness in the index near its resistance.
“Nifty 50 index is now at a level where one can sell with a target near its support at 24,500 level. The momentum indicators on the daily chart have sharply risen to the overbought region and showing reversal signs. In the rally today, present weekly expiry calls saw heavy writing, indicating a closing below 25,100 levels for present week expiry,” said Dwarakanath.
The immediate support for the index is at the 24,500 level, a drop to this level can be an opportunity to go long with a target of 25,200 or higher, he added.
VLA Ambala, Co-Founder of Stock Market Today said that the Nifty 50 formed a High Wave Doji candlestick pattern, indicating high volatility and indecision.
“I recommend maintaining a neutral strategy. We can expect Nifty 50 to find support between 24,850 and 24,900 and meet resistance between 25,300 and 25,380 in the coming intraday trading session,” Ambala said.
Bank Nifty Prediction
Bank Nifty index ended 402.55 points, or 0.72%, higher at 56,461.90 on Tuesday, forming a high wave candle with a higher high and higher low signaling positive bias.
“Bank Nifty retraced more than 80% of its recent breather (57,049 – 55,149). Going forward, the Bank Nifty index is expected to maintain positive bias and head towards the all-time high placed around 57,050 and 57,600 levels in the coming weeks. Immediate bias remains positive above 55,400 levels being the confluence of recent consolidation area and last week low. The daily stochastic remains in uptrend, thus validating positive bias,” Bajaj Broking Research said in a note.
According to the brokerage firm, key support is placed at 54,500 – 54,000 levels, being the confluence of 50 days EMA and key retracement level of the previous up move.
Om Mehra said that while the Bank Nifty index showed continued strength, it encountered resistance near the 56,800 zone, aligning with the upper Bollinger Band, and has faced mild selling pressure during the latter half of the session.
“The 20-day median, currently around 56,000, continues to act as a pivot, around which the index has been coiling. The RSI has ticked up to 59 but remains lodged below the decisive 65 mark, where momentum typically gains strength. On the hourly chart, the structure reflects a higher-high formation. Until a clean breakout occurs above 56,850, the trend may remain choppy and sideways. The support is placed near 55,700,” Mehra said.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.