Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 30 after US Fed policy

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to see a muted opening on Thursday tracking weak global market cues after the US Federal Reserve policy announcement.

The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 23,150 level, a premium of nearly 2 points from the Nifty futures’ previous close.

On Wednesday, the domestic equity market ended higher for the second consecutive trading session, with the Nifty 50 rising above 23,100 level.

The Sensex rallied 631.55 points, or 0.83%, to close at 76,532.96, while the Nifty 50 settled 205.85 points, or 0.9%, higher at 23,163.10.

Nifty 50 formed a long bull candle on the daily chart, which is indicating a sign of strength in the upside bounce.

Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:

Sensex Prediction

The Sensex surged 632 points and closed at 76,532.96 on Wednesday, forming a bullish candle on the daily charts.

“Technically, after a positive opening, the market maintained its upward trajectory throughout the day and formed a bullish candle on the daily charts, while also holding a higher bottom formation on the intraday charts. This supports a further uptrend from the current levels,” said said Shrikant Chouhan, Head Equity Research, Kotak Securities.

“We believe that if Sensex stays above 76,000, the pullback formation is likely to continue, and on the upside, the index could bounce back to the 20-day SMA (Simple Moving Average) at 77,000 and 77,200,” he added.

However, if Sensex falls below 76,000, the sentiment could change, and in that case, traders may prefer to exit their long positions, Chouhan said.

Nifty OI Data

Derivative data points to a crucial resistance zone between 23,300 and 23,500, as indicated by the highest call open interest (OI). On the downside, strong support is seen at 23,000, where the highest put OI is concentrated. This positioning suggests a tight trading range in the near term, with a breakout above 23,300 likely to trigger further buying momentum, said Mandar Bhojane, Equity Research Analyst at Choice Broking.

Given the heightened volatility and cautious trader positioning, market participants should closely monitor price action near these key levels to gauge further directional moves, he added.

Nifty 50 Prediction

Nifty 50 witnessed an excellent upside bounce on January 29 and closed the day higher by 205 points.

“The immediate resistance of 23,000 – 23,100 has broken on the upside and Nifty 50 closed higher. The negative chart pattern like lower tops and bottoms is still intact. A sustainable move above the next hurdles of around 23,350 – 23,400 levels could possibly negate this bearish pattern and also open more upside ahead. Immediate support is placed at 23,000 levels,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

Dr. Praveen Dwarakanath, Vice President of Hedged.in highlighted that the Nifty 50 gave the dead cat bounce as expected after a gap up, however, is still trading below the middle of the Bollinger band.

“The Nifty 50 index has its resistance at the 23,350 level, a breach of this can take the index towards its resistance at the 23,800 level. The momentum indicators on the hourly chart have zoomed up towards the oversold region, which can be a reason for the sell-off near the resistance level. Options writer’s data for the January monthly expiry showed increased writing of the puts at the 23,200 and below levels, indicating mild bullishness in the index,” said Dwarakanath.

VLA Ambala, Co-Founder of Stock Market Today, said Nifty’s RSI has dropped to 60 on the monthly chart, signaling that prices might correct further in the coming weeks and could test the 20-month EMA (Exponential Moving Average) — a great level for investing in index ETFs.

“However, Nifty formed a doji candlestick pattern with its RSI standing at 42. Amid these developments, Nifty could hover for support near 23,000 and 22,860, and resistance could be found near 23,260 and 23,380 in the next session. According to the market analysis, I would suggest investors buy cautiously at key supports while maintaining a neutral stance,” Ambala said.

Bank Nifty Prediction

Bank Nifty closed at 49,165.95, registering a gain of 0.61% on Wednesday, and formed a bullish candlestick pattern on the daily chart.

“Bank Nifty although moved up, has come near its resistance at the 49,200 level, a possible sell-off can push the index towards its immediate support at the 48,000 level. The momentum indicators on an hourly chart are moving sideways in yesterday’s 300-point rally, indicating weakness in the rally,” said Dr. Praveen Dwarakanath.

Options writer’s data for the monthly expiry showed increased writing of the puts at the 49,000 and below levels, indicating support for the index at the 49,000 level before today’s expiry, he added.

According to Om Mehra, Technical Analyst, SAMCO Securities, Bank Nifty is now trading above the 9 EMA, hinting at strengthening of an upward momentum.

“The index is exhibiting strong positive traction following the formation of a double-bottom pattern. The daily RSI displays positive divergence and has ample room to climb toward its average line of 50, further supporting the bullish sentiment. The immediate support for Nifty Bank is 48,750, which serves as a crucial floor for any near-term corrections. On the upside, minor resistance is situated at 49,650,” Mehra said.

A decisive break above this level could enhance the bullish outlook, potentially opening the door for further gains,” he added.

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.