The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher amid upbeat global market cues, even as sentiment remains cautious.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,859 level, a premium of nearly 33 points from the Nifty futures’ previous close.
On Monday, the domestic equity market ended marginally lower amid volatility, staging a recovery from early declines.
The Sensex declined 77.26 points, or 0.09%, to close at 81,373.75, while the Nifty 50 settled 34.10 points, or 0.14%, lower at 24,716.60.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex dropped 77 points and closed at 81,373.75 on Monday, taking support near 80,600 level during the day.
“We are of the view that, the current market texture is non directional hence level based trading would be the ideal strategy for day traders, 81,100 and the 20-day SMA or 81,300 would act as key support levels. Above these levels, the Sensex could move up to 81,600 – 81,800. On the flip side, below 81,100, selling pressure is likely to accelerate. If Sensex falls below this level, it could correct up to 80,600 – 80,400,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Nifty 50 Prediction
Nifty 50 showed signs of upside recovery from the lower levels on June 2 and closed the day lower by 34 points.
“A small positive candle was formed on the daily chart with a long lower shadow. This market action indicates a formation of bullish hammer type candle pattern (not a classical one) at the support of 20-day EMA after a fall of few sessions. The underlying trend of Nifty 50 remains choppy with weak bias,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Having shown upside recovery from the higher lows on Monday, the Nifty 50 is expected to show a short term upside bounce towards 24,900 in the next few sessions. Immediate support is at 24,500, he added.
Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates Ltd. noted that the Nifty 50 formed a hammer candlestick on the daily chart, suggesting potential strength.
“Immediate support for the index is placed near its 21-Day EMA, which is around 24,620, followed by 24,500. On the upside, the index might face strong resistance near the 25,000 – 25,100 zone,” Yedve said.
VLA Ambala, Co-Founder of Stock Market Today expects Nifty 50 index to remain in a small range for the next two to three days, as there are no significant news events or triggers.
“Nifty 50 is trading near its 20-day EMA, which is acting as an immediate support level for swing traders. Based on these developments, we can expect Nifty 50 to trade within a range of 25,000 to 24,300 this entire week. We can also expect Nifty 50 to gain support between 24,550 and 24,480 and face resistance near 24,800 and 24,870 in today’s intraday trading session,” Ambala said.
Bank Nifty Prediction
Bank Nifty index ended 153.70 points, or 0.28%, higher at 55,903.40 on Monday, extending gains for the fourth session in a row.
“Bank Nifty index has formed a small bull candle with a higher high and higher low, signaling consolidation with positive bias. The index is currently placed at the upper band of the last 5 weeks consolidation range placed around 55,800 – 56,000 levels. Going ahead, a move and a close above 56,000 levels will signal acceleration of the up move towards 56,700 levels in the coming sessions,” Bajaj Broking Research said in a note.
According to broking firm, the bias remain positive and dips should be used as a buying opportunity with immediate support placed at 55,000 – 55,200 levels while the key short-term support is seen at 54,000 – 53,500 being the confluence of key retracement and 50 days EMA and the lower band of the last 5 weeks consolidation range.
Hrishikesh Yedve said that the Bank Nifty index formed a green candle on the daily charts, indicating bullish undertone.
“On the upside, immediate resistance is seen near the 56,100, and a firm breakout above this level could extend gains towards 57,000 – 57,500. On the downside, the 21-DEMA placed near 55,060, will act as strong support. As long as the index holds above this level, a ‘buy on dips’ strategy is advisable for Bank Nifty,” Yedve 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.