Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday following a sell-off in Asian markets and the US stock market.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 25,170 level, a discount of nearly 175 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity market indices ended flat amid lack of fresh triggers.
The Sensex eased 4.40 points to close at 82,555.44, while the Nifty ended flat at 25,279.85.
Nifty 50 formed a small negative candle on the daily chart with minor lower shadow.
“Technically, this market action indicates a typical sideways range movement at the new highs in the last three sessions. The near-term uptrend status of Nifty remains intact. Present range bound movement could eventually result in an upside breakout of the hurdle at 25,400 levels over the period of time,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, a decisive move above this hurdle is expected to pull Nifty towards the next upside target of 25,800.
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 25,500 and 25,600 strike prices, while on the put side, the highest OI was at the 25,000 strike price, noted Mandar Bhojane, Technical Analyst at Choice Broking.
Nifty 50 continued its choppy movement on September 3 and closed on a flat note.
“Nifty remained rangebound, closing positively for the 14th consecutive day. It encountered resistance at 25,300, highlighting strong call option writing at that strike. Moving forward, only a decisive move above 25,300 might trigger a rally toward 25,500,” said Rupak De, Senior Technical Analyst, LKP Securities.
On the downside, he expects support to be positioned at 25,200 and 25,000.
According to VLA Ambala, Co-Founder of Stock Market Today, the Nifty index can expect support levels around 25,220 and 25,170, whereas resistance will likely be between 25,359 and 25,400.
Aditya Agarwal, Head of Derivatives and Technical at Sanctum Wealth noted that Nifty 50 continued to find stiff resistance around 25,300 - 25,350 levels and saw profit booking from higher levels.
“Overall, from a short term perspective, the index looks rangebound and is expected to consolidate in a broad band of 25,150 - 25,400. Dips towards 25,200 - 25,120 can be used to initiate fresh long positions for targets of 25,340 - 25,380 levels,” Agarwal said.
Bank Nifty outperformed the frontline index and closed 249.55 points, or 0.49%, higher at 51,689.10 on Tuesday, forming a bullish candlestick pattern on the daily charts.
“Bank Nifty saw fresh long buildup and closed above its resistance zone of 51,500 levels. Short term structure of Bank Nifty looks positive and on the higher side it can move towards 52,000 - 52,300 levels. On the lower side, the index will find support around 51,400 - 51,140 levels and a dip towards those levels can be used to initiate fresh long positions,” Agarwal said.
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