The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a tepid note on Tuesday, after posting strong rally in the previous session, amid upbeat global market cues.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,915 level, a discount of nearly 128 points from the Nifty futures’ previous close.
On Monday, the domestic equity market witnessed a stellar rally, with the benchmark Nifty 50 closing above 24,900 level.
The Sensex jumped 2,975.43 points, or 3.74%, to close at 82,429.90, while the Nifty 50 settled 916.70 points, or 3.82%, higher at 24,924.70.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex spiked nearly 3,000 points, and formed a long bullish candle on daily charts, while breakout continuation formations on daily and intraday charts indicate a further uptrend from the current levels.
“We believe that the 81,150 resistance zone of Sensex has now become a strong support zone for short-term traders. For day traders, buying on intraday dips and selling on rallies would be the ideal strategy. On the higher side, 83,000 – 83,300 would be the key resistance areas, while below 81,150 traders may prefer to exit their long positions,” said Shrikant Chouhan, Head – Equity Research, Kotak Securities.
Nifty 50 Prediction
Nifty 50 closed 916.70 points higher at 24,924.70, forming a big bullish candle on the daily chart and crossed the major resistance zone of the 24,850 – 24,860, resulting in a fresh breakout.
“Based on this breakout, if the Nifty 50 index sustains above 24,850, it could test 25,200 in the short term and 25,500 – 25,800 in the medium term. Hence, traders are advised to adopt a buy-on-dips strategy as long as the index holds above 24,850 on a closing basis,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.
Om Mehra, Technical Research Analyst, SAMCO Securities, noted that the Nifty 50 reclaimed levels above the 9-day EMA (Exponential Moving Average), and the daily RSI turned upward after remaining range bound, indicating renewed bullish momentum.
“Based on Fibonacci clustering, resistance remains near the 25,200 mark, while support has shifted higher to around 24,600. The index has given a strong breakout, out of its recent consolidation, and the broader trend has turned decisively positive. A ‘buy-on-dips’ strategy may be preferred for the upcoming sessions,” Mehra said.
According to VLA Ambala, Co-Founder of Stock Market Today, Nifty 50 can gain support at 24,820 and face resistance near 25,120 and 25,280. In this situation, she advises traders to adopt a ‘buy-on-dips’ strategy.
Bank Nifty Prediction
Bank Nifty surged 1,787.60 points, or 3.34%, to close at 55,382.85 on Monday, forming a Morning Star candlestick pattern on the daily chart.
“Bank Nifty index has been oscillating within a flag pattern and is now positioned above the median line of the channel, suggesting strengthening momentum. The index has now formed a Morning Star pattern (bullish), which further strengthens the ongoing momentum. The index has also moved above all key moving averages, while the daily RSI at 65 is trending higher. The immediate resistance is placed at the all-time high of 56,098.70. A decisive breakout above this level could open further upside toward 56,500 – 56,600,” said Om Mehra.
The hourly MACD has turned positive, and a corresponding confirmation on the daily timeframe would strengthen the positive outlook. The support is placed at 55,000, followed by 54,750. The overall trend remains bullish, with any pullback likely to be a buy-on-dip opportunity, Mehra added.
Hrishikesh Yedve said that the Bank Nifty formed a Morning Star candlestick pattern on the daily chart, indicating strength.
“The next key hurdle for the Bank Nifty is placed near the 56,000 – 56,100 zone, while major support is seen near 53,480. Traders are advised to hold long positions and consider booking profits around the 56,000 – 56,100 levels,” said Yedve.
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.