Nifty 50, Sensex today: What to expect from Indian stock market in trade on August 9

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Friday tracking an upbeat momentum in global markets.

The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 24,390 level, a premium of nearly 270 points from the Nifty futures’ previous close.

On Thursday, the domestic equity indices ended lower after the announcement of the Reserve Bank of India’s (RBI) monetary policy.

The Sensex declined 581.79 points to close at 78,886.22, while the Nifty 50 settled 180.50 points, or 0.74%, lower at 24,117.00.

The RBI kept the repo rate unchanged at 6.5% and maintained the stance of ‘withdrawal of accommodation’.

Nifty 50 formed a reasonable negative candle on the daily chart with upper shadow, that is placed within a high low range of 24,350 - 24,000 levels.

“The crucial hurdle of the opening down gap of August 5 is still intact, the market was not able to break the lower end of that down gap around 24,350 levels on the higher side. The short-term trend of Nifty 50 remains choppy. Lack of follow-through upmove and the presence of strong overhead resistance is signaling some more consolidation or weakness in the short term,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, a slide below 23,900 could open another round of downward correction, however, a decisive move above 24,350 levels could bring bulls back into action.

Here’s what to expect from Nifty 50 and Bank Nifty today;

Nifty 50 Prediction

Nifty 50 was unable to surpass the crucial hurdle of 24,350 levels and slipped into weakness on August 8 and closed the day lower by 180 points.

“While the primary trend remains positive, the overbought conditions across various parameters suggest caution in taking aggressive long positions on the index. We reiterate that a correction is likely in the near term, either price-wise or time-wise, and it seemed Nifty favored the latter. The immediate trading range is visible between 24,200 and 24,500, with key levels extending to 24,000 - 24,600,” said Rajesh Bhosale, Equity Technical Analyst, Angel One.

He believes any dip toward the lower end would be a buying opportunity, whereas any upside toward the mentioned resistance should prompt traders to book profits. He advises traders to monitor these levels and adjust their strategies accordingly.

VLA Ambala, Co-Founder of Stock Market Today noted that the RSI readings show 45 on the daily, 64 on the weekly, and 73 on the monthly frames, indicating varying market volatility across timeframes. However, she expects that in the next 3-5 days, the Nifty 50 index will test the 23,500 - 24,500 range again.

According to Ambala, Nifty support levels are expected between 22,900 and 23,820 and the index may face resistance around 24,010 and 25,150.

Bank Nifty Prediction

Bank Nifty index ended with minor gains of 38 points at 50,157 on Thursday and formed a small bullish candlestick pattern on the daily timeframe.

“Bank Nifty Index formed a small bodied candle on daily scale as momentum is missing on either sides. Index has got stuck in a wider range of 1,000 points from the last four sessions and stock specific action is seen within banking space,” said Chandan Taparia, Head – Equity Derivatives and Technicals, Broking and Distribution, MOFSL.

He believes that till Bank Nifty holds below 50,350 zones some weakness could be seen towards 49,750 then 49,500 levels, while on the upside hurdle is seen at 50,500 then 50,750 zones.

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.