1 week Ago
The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday, influenced by negative global cues. The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 22,442.
50 level, a discount of 187.85 points from the Nifty futures’ previous close. The Reserve Bank of India (RBI) will announce its monetary policy today.
The RBI Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) is expected to cut repo rate amid cooling inflation and slowing economic growth. On Tuesday, the domestic equity market witnessed a sharp relief rally, with the benchmark Nifty 50 closing above 22,500 level. The Sensex surged 1,089.
18 points, or 1.49%, to close at 74,227.08, while the Nifty 50 settled 374.
25 points, or 1.69%, higher at 22,535.85.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today: Sensex Prediction Sensex bounced back sharply on Tuesday and rallied by 1,089 points, closing above the 74,200 level. “Promising reversal formation and higher bottom formation on intraday charts suggesting pullback formation is likely to continue in the near future. For day traders now, 73,500 would be a key level to watch for Sensex; above this level, a pullback wave could move up to 75,000, with further upside potentially lifting the Sensex index to 75,200.
Conversely, a dismissal of 73,500 could accelerate selling pressure. If this level is breached, Sensex could retest 73,000 - 72,800,” said Shrikant Chouhan, Head equity Research, Kotak Securities. According to him, the current market texture is extremely volatile and uncertain; thus, a level-based trading strategy would be ideal for day traders.
Nifty OI Data Nifty derivative data continues to reflect a cautious-to-bearish tone. Call writers have remained aggressive, outnumbering their put counterparts and adding to the negative bias. The 23,000 strike saw a massive call OI (Open Interest) buildup of 1.
02 crore contracts, confirming its status as a formidable resistance level. On the flip side, solid put writing was visible at the 22,500 strike (67.90 lakh contracts), which indicates firm support at lower levels, said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.
Nifty 50 Prediction Nifty 50 continued its follow-through upmove on April 8 and closed the day with handsome gains of 374 points. “A reasonable positive candle was formed on the daily chart with long upper and lower shadow. Technically, this market action signals a formation of a high wave type candle pattern, which indicates ongoing high volatility in the market.
The recent sharp opening downside gap of Monday has been challenged and has been filled partially. As per the gap theory, the said down gap could be considered as a bullish exhaustion gap and that is likely to be filled soon around 22,850 levels on the higher side,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities. Normally, bullish exhaustion gaps are more often associated with important bottom reversals.
Immediate support is placed at 22,270, he added. Om Mehra, Technical Research Analyst, SAMCO Securities noted that the Nifty 50 rebounded from the oversold zone — potentially a dead cat bounce, and has retraced to the 38.2% Fibonacci level, connecting the recent swing high and low.
“Nifty 50 remains below the 9, 20, and 50 EMAs (Exponential Moving Average) on the daily chart- a minor concern for a sustainable trend reversal. On a positive note, the hourly chart reflects a constructive development, with the previous resistance at 22,250 now acting as a support level, thereby strengthening the short-term bullish structure,” Mehra said. The daily RSI and MACD are yet to cross above their respective averages, reflecting ongoing weakness and suggesting that market momentum is still in search of firm footing.
A sustained move above 22,650 could pave the way for further upside in the upcoming session. The 50% Fibonacci retracement level at 22,800 remains a key resistance to watch, he added. VLA Ambala, Co-Founder of Stock Market Today, highlighted that after the gap opening, the Nifty 50 moved in a 300-point range and formed a “high-wave doji” candlestick pattern on the daily chart.
“Amid these ongoing market developments, Nifty 50 can find support between 22,270 and 23,400 and meet resistance near 22,930 and 23,000,” said Ambala. Bank Nifty Prediction Bank Nifty ended 1.31% higher at 50,511, as it staged a recovery from the previous day’s sharp decline, reflecting improved outlook in the daily chart .
“The Bank Nifty index crossed the hurdle of the 100-Day EMA placed around 50,150 and formed a green candle, indicating strength. On the upside, the 50,750 – 50,800 zone will serve as a key resistance area. A sustained move above 50,800 could trigger a fresh rally, potentially taking the index towards 51,500 – 52,000 levels,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C.
Mehta Investment Interrmediates Ltd. Om Mehra said that the Bank Nifty index is currently positioned above the 20 and 50 DEMAs, though it remains below the 9 DEMA. Meanwhile, the RSI is gradually rebounding from lower levels, hinting at a potential recovery in momentum.
“Bank Nifty index reclaimed the psychological mark of 50,500, which adds strength to the bullish stance. In the near term, the index is poised to test the 51,100 zone, and a sustained move above this level could set the stage for a more decisive uptrend in the sessions ahead. However, some caution is still needed,” Mehra said.
A clear break below the key support at 49,850 could weaken the current setup and put the ongoing recovery at risk, dampening the bullish sentiment, he added. 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.
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