Indian stock market indices, Sensex and Nifty 50, are likely to open higher on Monday led by positive global market cues.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,915 level, a premium of nearly 60 points from the Nifty futures’ previous close.
On Friday, the domestic equity market indices ended flat with a positive bias.
The Sensex gained 33.02 points to close at 81,086.21, while the Nifty 50 settled 11.65 points, or 0.05%, higher at 24,823.15.
Nifty 50 formed a small negative candle on the daily chart at the highs, within a narrow high low range of around 90 points.
“This is indicating a lackluster type movement in the market near the resistance. Nifty is currently placed at the hurdle of opening down gap of 2nd August around 24,850 - 24,950 levels. Nifty on the weekly chart formed a reasonable positive candle with minor lower shadow. A significant down gap resistance of previous week on the weekly chart has been filled completely at 24,700 levels and the market closed above it,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He believes the underlying trend of Nifty 50 continues to be choppy with positive bias and further upmove from here could pull Nifty 50 towards 25,000 - 25,100 levels in the near term.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 continued the choppy movement on August 23 and closed the day with minor gains amidst a range bound action.
“The RSI is showing a bullish crossover, and the trend remains positive as it closed above the 21 EMA (Exponential Moving Average). The market seems to favor a ‘buy on dips’ strategy while it stays above 24,650. On the upside, Nifty faces resistance at 24,850 - 24,900/25,000,” said Rupak De, Senior Technical Analyst, LKP Securities.
On the downside, he believes the index could see a significant correction if it falls below 24,650.
Due to the current condition, VLA Ambala, Co-Founder of Stock Market Today advises market participants to avoid overbought stocks and consider safe profits.
“While global market growth is gaining momentum, India, being the largest consumer market, remains the focus. Despite challenges like inflationary pressure and unemployment, the Indian market is likely to continue gaining global interest. Amid these, Nifty can expect support levels at 24,760 and 24,700, while resistance could be around 24,890 and 24,965 in the next session,” Ambala said.
Bank Nifty ended marginally lower by 52 points at 50,933 on Friday forming a bearish candlestick pattern on the daily charts.
“For Bank Nifty, 20-day SMA or 50,700 would be the immediate reference point for the bulls. As long as it is trading above the same, the bullish sentiment is likely to continue. On the higher side, it could move up till the 50-day SMA or 51,500. Further upside may also continue which could lift the index till 51,800,” said Amol Athawale, VP-Technical Research, Kotak Securities.
According to him, on the flip side, below 50,700, Bank Nifty could retest the level of 50,250 - 50,000.
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.
