Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday amid mixed global cues.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. At 7:07 IST, the Gift Nifty was trading around 25,369.00 level, a premium of 118 points from the Nifty futures’ previous close.
On Wednesday, the domestic equity market indices ended lower amid weak global cues.
The Sensex fell 202.80 points to close at 82,352.64, while the NIfty 50 settled 81.15 points, or 0.32%, lower at 25,198.70.
Nifty 50 formed a reasonable bull candle on the daily chart after opening lower.
“Technically, this pattern indicates a formation of a bullish counterattack type candle pattern (not a classical one). This could signal buy on dips opportunity in the market. Nifty is currently placed at the crucial cluster support around 25,000 levels (ascending trend line and 10-day EMA). The bullish pattern like higher highs and higher lows is visible on the daily chart,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He believes the near-term uptrend status remains intact for Nifty and any consolidations and minor dip down to 25,000 mark is expected to be a buying opportunity. One may expect Nifty to surge towards the new all-time highs soon around 25,350 - 25,400.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty Open Interest (OI) data revealed the highest OI on the call side at the 25,300 and 25,500 strike prices, while on the put side, it was concentrated at the 25,000 strike price, said Hardik Matalia, Derivative Analyst at Choice Broking.
Nifty made an attempt of a downside breakout on September 4, but a sustainable intraday upside recovery finally led Nifty to close off the lows.
“The Nifty broke its upward trend by falling below the trend line on the hourly chart. However, the index found initial support at the historical swing high. Going forward, the index might consolidate between 25,080 and 25,250,” said Rupak De, Senior Technical Analyst, LKP Securities.
According to him, a drop below 25,080 could trigger further correction towards 24,800 - 24,750 / 24,500; while a move beyond 25,236 might induce a rally toward higher levels.
After analyzing the market, VLA Ambala, Co-Founder of Stock Market Today said that the Nifty index could expect support levels around 25,180 and 25,120, whereas resistance will likely be between 25,280 and 25,345.
Aditya Agarwal, Head of Derivatives and Technical at Sanctum Wealth expects Nifty to trade in a broad range of 25,100 - 25,340 for next few sessions before giving a fresh breakout and a dip towards 25,140 - 25,100 can be used to initiate fresh long positions for short term targets of 25,300 - 25,350.
Bank Nifty index declined 288.85 points, or 0.56%, to close at 51,400.25 on Wednesday.
“Bank Nifty respected its support zone of 51,250 and saw pullback from those levels. On the higher side, the index will find immediate resistance around 51,500 levels and above that can test 51,800 / 52,050 levels whereas a close below 51,250 will put pressure on Bank Nifty and in that scenario, it can drag towards 50,900 levels,” Agarwal said.
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