Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday tracking positive trends in global markets.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 25,085 level, a premium of nearly 140 points from the Nifty futures’ previous close.
On Wednesday, the domestic equity indices ended lower, with both the indices falling half a percent each.
The Sensex declined 398.13 points to close at 81,523.16, while the Nifty 50 settled 122.65 points, or 0.49%, lower at 24,918.45.
Nifty 50 formed a bearish engulfing candlestick pattern, suggesting a potential downturn ahead.
“Nifty 50 index’s RSI readings were at 53 on the daily chart and 68 on the monthly chart, and it was trading at its 20-day EMA (Exponential Moving Average) on the daily frame. However, it is still 3.5% above the 20-day EMA on the weekly timeframe. If Nifty 50 closes below the 24,700 level in the coming days, the gap is likely to fill,” said VLA Ambala, SEBI Registered Research Analyst and Co-Founder of Stock Market Today.
Here’s what to expect from Nifty 50 and Bank Nifty today:
In the Open Interest (OI) data, the highest OI on the call side was observed at the 25,100 and 25,200 strike prices, while on the put side, the highest OI was at the 24,700 strike price, said Mandar Bhojane, Research Analyst at Choice Broking.
Nifty 50 dropped 122.65 points, or 0.49%, to close at 24,918.45 on September 11, and formed a small bearish candle on the daily charts.
“Nifty 50 continued to find stiff resistance around 25,100 levels and saw sharp selling pressure from those levels in the second half of the session. Short term trend remains rangebound to weak and pullback towards 25,050 - 25,100 can be used to exit from trading long positions. On the lower side, Nifty 50 will find support around 24,880 and below that can see further selling that can drag the index towards 24,800 / 24,750 levels,” said Aditya Agarwal, Head of Derivatives and Technical at Sanctum Wealth.
Amid the ongoing market situation, VLA Ambala said the Nifty index could expect support levels around 24,735 and 24,630, whereas resistance could be between 25,020 and 25,145 in the next session.
Bank Nifty index failed to breach its 50 DMA and saw selling pressure from those levels to end 262.30 points, or 0.51%, lower at 51,010.00 on Wednesday.
“Bank Nifty will continue to see strong resistance around 51,400 - 51,500 levels and a close above that can trigger a short covering move that can take it towards 52,000 / 52,400 levels whereas on lower side 50,850 / 50,640 will act as support zone and dip towards those levels can be used to initiate fresh long positions,” said Agarwal.
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