Nifty 50, Sensex today: What to expect from Indian stock market in trade on September 20

Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Friday tracking positive cues from global peers.

The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 25,530 level, a premium of nearly 40 points from the Nifty futures’ previous close.

On Thursday, the domestic equity market ended higher, with both the benchmark indices hitting record highs intraday.

The Sensex rose 236.57 points to close at 83,184.80, while the Nifty 50 settled 38.25 points, or 0.15%, higher at 25,415.80.

Nifty 50 formed a small negative candle on the daily chart with a long upper shadow.

“Technically, this pattern indicates false upside breakout of the range movement at 25,500 levels. Having rejected sharply from the new highs, minor dip can’t be ruled out in the short term,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He believes the near-term uptrend of Nifty 50 remains intact, but the market is witnessing a high volatility at the new highs and any minor weakness down to the support of 25,200 - 25,100 levels could be a buy on dips opportunity.

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

Nifty OI Data

Analysing the OI Data, Deven Mehata, Derivative Analyst at Choice Broking said, on the call side, the highest OI observed at 26,000 strike prices, while on the put side, the highest OI is at 25,000 strike price.

Nifty 50 Prediction

Nifty 50 made a failed attempt of decisive upside breakout of the range on September 19 and closed the day with minor gains of 38 points. It registered a new all-time high of 25,611 intraday.

“The Nifty formed a shooting star pattern on the hourly chart, suggesting an early sign of a bearish reversal. Additionally, the Nifty failed to close above the rising trendline despite a gap-up opening and strong global cues. Going forward, the sentiment may remain sideways to weak as long as the index stays below the 25,550 – 25,600 range,” said Rupak De, Senior Technical Analyst, LKP Securities.

According to him, on the lower end, support is placed at 25,350, below which the Nifty 50 might correct down towards 25,100 - 25,000.

Aditya Agarwal, Head of Derivatives and Technical at Sanctum Wealth noted that the Nifty 50 failed to sustain at higher levels and saw profit booking that dragged the index below 25,400.

“On the lower side, Nifty will find immediate support around 25,360 levels and a close below that can further put pressure on Nifty and in that scenario, it can correct towards 25,240 / 25,160 level whereas on higher side 25,540 - 25,580 will be stiff resistance zone,” Agarwal said.

VLA Ambala, Co-Founder of Stock Market Today recommends to follow a cautious approach as technically, the Nifty and Sensex indices formed a bearish candlestick pattern at the top and were trading in overbought zones on monthly and weekly timeframes.

“The Nifty index could expect support levels around 25,360 and 25,210 and notice resistance between 25,530 and 25,640 in today’s session,” Ambala said.

Bank Nifty Prediction

Bank Nifty outperformed broader markets and closed above 53,000 levels with gains of 0.54% on Thursday, forming a bullish candlestick pattern on the daily charts.

“Bank Nifty structure remains bullish and any dip towards 52,820 / 52,640 can be used as a buying opportunity for short term targets of 53,440 / 53670. On the lower side, a close below 52,280 will weaken the overall structure for Bank Nifty and below that it can gradually correct towards 51,600 / 51,300 levels,” Aditya Agarwal said.

According to VLA Ambala, Bank Nifty is likely to trade in the 53,700 to 52,500 range within 2–5 days.

“The index’s RSI readings were 69 on the daily, 66 on the weekly, and 70 on the monthly timeframes, forming a Shooting Star candlestick pattern. However, it is gradually shifting towards the overbought zone. Bank Nifty can expect to gain support around 52,950 and 52,800 and witness resistance between 53,220 and 53,380,” suggested Ambala.

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.