The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Monday, tracking upbeat global market cues.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 26,155 level, a premium of nearly 78 points from the Nifty futures’ previous close.
On Friday, the Indian stock market snapped its two-day gaining run and ended lower.
The Sensex dropped 400.76 points, or 0.47%, to close at 85,231.92, while the Nifty 50 settled 124.00 points, or 0.47%, lower at 26,068.15.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex formed a bullish candle on weekly charts, and has formed an uptrend continuation formation on both weekly and daily charts, which is largely positive.
“We are of the view that 85,000 and 84,500, or the 20-day SMA, will be key support zones for traders. As long as Sensex is trading above these levels, the bullish sentiment is likely to continue. On the higher side, 85,800 could be the immediate resistance zone for the bulls. A successful breakout above 85,800 could push the index up to 86,500,” said Amol Athawale, Vice President – Technical Research, Kotak Securities.
On the flip side, if Sensex falls below the 20-day SMA or 84,500, sentiment could change. Below these levels, traders may prefer to exit long positions, he added.
Nifty OI Data
Nifty 50 options landscape reflects a relatively balanced expiry battle. Total Nifty Call Open Interest (OI) surged by over 6 crore contracts, while Put OI saw selective unwinding, indicating that Call writers are attempting to cap the index below 26,200. However, strike-wise OI data shows robust Put additions at the 25,900 – 26,000 level, suggesting that bulls are actively defending these key support levels, said Ponmudi R, CEO of Enrich Money.
The heavy Call writing between 26,200 and 26,300 is creating a temporary ceiling, keeping the index within a narrow range. That said, the broader sentiment remains constructive as long as Put writers continue to hold their positions and do not shift lower, Ponmudi R added.
Nifty 50 Prediction
Nifty 50 has formed a red candle with a long upper shadow on the daily chart, indicating heavy selling pressure at higher levels. The index gained 0.61% last week and formed a reasonable bull candle with a long upper shadow near all-time highs, indicating a bullish outlook.
“A small negative candle has formed on the daily chart with minor upper shadow. Technically, this market action indicates emergence of profit booking in the market from near the crucial overhead resistance at all-time highs of 26,300. Nifty 50 on the weekly chart formed a reasonable bull candle with long upper shadow near all-time highs. The overall weekly chart pattern indicates bullish outlook for Nifty for the near term amidst volatility,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the overall near-term trend of Nifty 50 remains positive and present short-term weakness could form a new higher bottom around 26,000 – 25,900 levels in the next few sessions.
“We expect a bounce back from near the support by next week. Immediate overhead resistance to be watched around 26,250 – 26,300,” said Shetti.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking noted that the momentum indicators and oscillators remain in buy mode on both the daily and weekly charts.
“A phase of consolidation is likely before the next upward move, with Nifty 50 expected to oscillate within a broader range of 25,800 – 26,200. The 21-DMA, placed near 25,840, is likely to serve as key support if the market pulls back. A breakout above the recent swing high could pave the way for fresh record levels around 26,300,” said Jain.
Om Ghawalkar, Market Analyst, Share.Market said that the near-term resistance for Nifty 50 is seen in the 26,100 – 26,200 zone, while support lies at 25,900 – 26,000.
Bank Nifty Prediction
Bank Nifty index closed 480.00 points, or 0.81%, lower at 58,867.70 on Friday, forming a red candle on the daily chart. For the week, the index gained 0.60% and formed a shooting star pattern on the weekly time frame, both indicating short-term weakness.
“As long as the Bank Nifty index stays below 59,440, traders are advised to book profits on pullbacks. Immediate support for Bank Nifty is placed near 58,600, followed by 58,050,” said Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Intermediates Ltd.
Puneet Singhania, Director of Master Trust Group noted that the Bank Nifty index remains comfortably above the previous breakout zone of 58,500 and continues to trade above the 21-day and 55-day EMAs, highlighting strong upward momentum.
“The weekly MACD stays positive, reinforcing the sustained bullish trend. Immediate support is seen at 58,500, with a stronger weekly base near 58,000. On the upside, resistance is positioned around 59,300, and a decisive move above this zone could pave the way toward 59,800. The overall structure remains bullish, favoring a buy-on-dips approach,” said Singhania.
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.
