Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Friday tracking weakness in global peers.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 25,180 level, a discount of nearly 55 points from the Nifty futures’ previous close.
On Thursday, the domestic equity indices ended lower dragged by selling in select heavyweights and weak global cues.
The Sensex fell 151.48 points to close at 82,201.16, while the Nifty 50 settled 53.60 points, or 0.21%, lower at 25,145.10.
Nifty 50 formed a small negative candle on the daily chart and the previous opening downside gap of 4th September has acted as a key hurdle around 25,250 levels for the day.
“Technically, this pattern indicates a lack of strength in the market to surpass the resistance of around 25,250 - 25,300 levels. Hence, one may expect some more consolidation in the market ahead. The short-term trend of Nifty continues to be choppy with weak bias,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, further weakness from here could find key lower support around 25,000 - 24,900 levels before showing a sustainable upside bounce again from the lows.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty Open Interest (OI) data showed the highest OI on the call side at the 25,200 and 25,300 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 50 shifted again into choppy movement and closed the lower by 53 points on September 5.
“Nifty remained mostly range-bound throughout the day, with prices sustaining below the resistance level of 25,200. Sentiment remains indecisive, as the index stayed within the range of 25,100 to 25,200. Going forward, a clear directional trend may not emerge as long as the index remains within this range,” said Rupak De, Senior Technical Analyst, LKP Securities.
According to him, a decisive move above 25,200 could potentially push the index towards 25,350 / 25,500. Support on the lower end is placed at 25,080 / 24,950.
Aditya Agarwal, Head of Derivatives and Technical at Sanctum Wealth expects Nifty 50 index to consolidate in a narrow band of 25,060 - 25,300 for a few sessions before giving a fresh breakout on either side.
“A close below 25,050 will weaken short term sentiment and in that scenario, Nifty may correct towards 24,900 - 24,820 levels,” Agarwal said.
VLA Ambala, Co-Founder of Stock Market Today believes the benchmark Nifty 50 index is already in an overbought zone and formed a ‘Dark Cloud Cover’ candlestick pattern in the latest session.
Ambala expects the Nifty 50 to find support levels around 25,260 and 25,300, whereas resistance will likely be between 25,070 and 25,000.
Bank Nifty outperformed Nifty in Thursday’s session and closed with minor gains of 72.80 points, or 0.14%, at 51,473.05.
“Short term structure for Bank Nifty looks positive and on the higher side it can move towards 51,750 / 52,200 levels. Dip towards 51,350 can be used to initiate fresh long position with stoploss placed below 51,100 levels,” Agarwal said.
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