The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher tracking gains in global markets.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,888 level, a premium of nearly 90 points from the Nifty futures’ previous close.
On Wednesday, the domestic equity market indices ended higher, with the Nifty 50 rising for the fifth consecutive session.
The Sensex gained 102.44 points, or 0.13%, to close at 80,905.30, while the Nifty 50 settled 71.35 points, or 0.29%, higher at 24,770.20.
Nifty 50 formed a reasonable positive candle on the daily chart that has surpassed the previous down gap hurdle of 5th August around 24,700 levels.
Another hurdle of daily 10- and 20-day EMA (Exponential Moving Average) has also been taken out on the upside. The short term trend of Nifty continues to be positive with range bound action. The market is now set to challenge another opening down gap resistance of 2nd August around 24,960,’ said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Hence, one may expect the Nifty to move towards 24,960 and 25,100 levels in the next one week, he added.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 continued the upside momentum with a range bound action on August 21 and closed the day higher by 71 points.
“From a technical standpoint, Nifty 50 is steadily approaching the critical resistance of the bearish gap situated around 24,850 - 24,950, which would be crucial to monitor given the current momentum. On the flip side, a gradual upshift in the support base is evident, with 24,650 - 24,600 likely to provide a cushion for any potential setbacks, while the sacrosanct support lies around the pivotal zone of 24,500,” said Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One Ltd.
According to him, the undertone seems buoyant, with action across the broader market space; hence, maintaining exclusivity is advisable for outperformance.
VLA Ambala, Co-Founder of Stock Market Today noted that the Nifty formed a bullish Marubozu candlestick pattern on the daily timeframe and closed with a 0.35% gain.
“According to the RSI readings at the daily and weekly timeframes, the price has started to cool off. Similarly, the India VIX was trading near 13.30 points and declined 3.30% in the session, indicating low market volatility. In this situation, the Nifty index can find support levels between 2,4720 and 24,630, and resistance could be faced between 24,850 and 24,900 levels in the next market session,” Ambala said.
Bank Nifty index underperformed the frontline indices on Wednesday to close 117.60 points, or 0.23%, lower at 50,685.55.
“Bank Nifty formed a Dragonfly Doji candlestick pattern near its 20-day and 50-day EMAs. Bank Nifty can find support at 50,630, 50,450, or 50,210 and face resistance levels between 51,180 and 51,490 in the next market session,” Ambala said.
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