Stock market today: Frontline indices- the Sensex and the Nifty 50- are likely to open with solid gains on Monday as indicated by Gift Nifty. A landslide victory of BJP-led alliance in Maharashtra assembly election 2024 could trigger a risk-on rally in the market. Positive global cues may further support sentiment.
The Gift Nifty was trading around 24,319 level around 8:25 am, up nearly 301 points from the Nifty futures’ previous close.
The Sensex and the Nifty 50 clocked solid gains of up to 2.5 per cent on Friday, ending the week in positive territory. Sensex jumped 1,961 points, or 2.54 per cent, to end at 79,117.11, while the Nifty 50 settled 557 points, or 2.39 per cent, higher at 23,907.25. Nifty Bank jumped 763 points, or 1.51 per cent, to 51,135.40. There was across-the-board buying. Among the sectoral indices, IT, Realty, and PSU Bank indices jumped 3 per cent each.
Due to Friday's strong gains, the Nifty 50 moved back above the 200DMA, indicating an improving trend. Moreover, the index has broken out of a few days of congestion on the daily timeframe.
"The RSI has entered a bullish crossover near the oversold zone, suggesting positive momentum. The sentiment appears favourable for a meaningful rally in the short term as long as the index stays above 23,600. Immediate resistance is seen at 23,960–24,000. A decisive move above 24,000 could trigger a rally toward 24,500. On the downside, supports are placed at 23,750 and 23,550," said Rupak De, Senior Technical Analyst at LKP Securities.
According to Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, on the daily charts, the Nifty 50 surpassed the previous swing high of 23780, reversing its short-term trend.
"On the upside, we expect the Nifty to retrace towards 24,400 with the potential to extend towards 24,730. On the downside, 23,630 – 23,560 shall act as a crucial support zone, and only a dip below these levels will weaken the structure," said Gedia.
Amol Athawale, VP of technical research at Kotak Securities, believes as long as the market is trading above 200-day SMA or 23,600/77,500, the pullback formation is likely to continue.
"On the higher side, it could move up to 24,000-24,200/79,400-79,900. On the flip side, below 23,600/77,500, the sentiment could change. Below the same, traders may prefer to exit from the trading long positions," said Athawale.
Gedia expects the positive momentum to continue towards 52,100 from the short-term perspective. The crucial support zone is placed at 50,500 – 50,400, he said.
Athawale said for the Bank Nifty now, 50,500 and 50,300 would be key support zones, while 20-day SMA, or 51,250, and 50-day SMA, or 51,850, could be the crucial resistance areas for the short-term traders.
Read all market-related news here
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
