Due to India’s Q2 GDP growth being greater than anticipated, the key indices for the Indian stock market, the Sensex and Nifty 50, are projected to open higher on Monday. Global marketplaces continue to be diverse.
A gap-up start for the Indian benchmark index is also suggested by the Gift Nifty patterns. The Gift Nifty was trading at over 26,530, which was almost 143 points higher than the previous close of the Nifty futures.
The benchmark Nifty 50 remained above the 26,200 mark as the Indian stock market closed Friday slightly down.
The Nifty 50 closed 12.60 points, or 0.05%, lower at 26,202.95, while the Sensex fell 13.71 points, or 0.02%, to conclude at 85,706.67.
What to anticipate from the Sensex, Nifty 50, and Bank Nifty today is as follows:
Sensex Forecast
On daily and intraday charts, the Sensex developed a hopeful reversal pattern. On daily charts, it is also maintaining a higher bottom formation, which is generally good. The index increased by 0.56% for the week.
“We believe that the market’s short-term outlook is favorable and that uptrend formation will probably continue in the near future.” 85,300 and 85,000 would serve as important support areas for positional traders. The upward trend is probably going to last till 86,100 on the higher side. The Sensex could reach 86,500–86,800 if further gain continues, according to Amol Athawale, VP of Technical Research at Kotak Securities.
Conversely, he thinks the upswing would become susceptible below 85,000, and the Sensex is probably going to retest between 84,500 and 84,300.
Mayank Jain, Share, Market Analyst. According to the market, the Sensex’s next significant resistance level is between 86,000 and 86,100, and a breakout above this range might lead to new record highs. There is support between 85,100 and 85,000.
Nifty OI Information
Derivatives market positioning still indicates a strong optimistic undertone.
Strong positional support close to the 26,000 zone is confirmed by the fact that cumulative put open interest (OI) is still larger than call OI. According to Ponmudi R, CEO of Enrich Money, “consistent call writing at 26,300 to 26,500 is creating a firm supply band on the upside, while heavy put buildup between 26,000 and 26,100 has strengthened the downside base.”
Nifty 50 Forecast
On the daily chart, the Nifty 50 created a tiny negative candle with a slight upper and lower shadow. The index increased by 0.52% for the week, creating a tiny candlestick on the weekly chart that shows reluctance at higher levels.
Technically, this indicates that the market will continue to move erratically following Wednesday’s outstanding surge. The Nifty 50’s narrow range movement over the past several sessions following the formation of a long bull candle on Wednesday suggests a potential upward continuation pattern, according to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He claims that the Nifty 50’s underlying uptrend is still in place and that the current turbulent volatility may soon lead to another significant market breakout.
“The immediate support is set at 26,050, and the near-term upside target to be watched is around 26,600,” stated Shetti.
The 21-DMA support at 25,890 is still important, according to Nilesh Jain, Head of Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking Ltd. As long as the Nifty 50 stays above this level, the larger uptrend and bullish momentum are likely to continue.
Because of the current adverse risk-reward balance, it is not prudent to chase the index at high levels. It would be wiser to wait for a healthy downturn before starting new holdings, according to Jain.
Vice President of Hedged.in Dr. Praveen Dwarakanath observed that Friday’s price action created an insider candle, signaling a potential sell-off from the current level because the strength of the breach of the all-time high was absent.
Additionally, the momentum indicators are close to the overbought area, indicating a potential sell-off from the present level. According to Dwarakanath, “the AD average line has flattened out, suggesting no clear sign in the index.”
A prolonged close above this band might open the door to 26,500+, according to Mayank Jain, who claims that the 26,250–26,300 zone now acts as a critical resistance-turned-trigger for the Nifty 50. Support for immediate needs is still between 25,900 and 26,000.
Forecast for the Bank Nifty
The Bank Nifty index formed a doji candle on the daily chart on Friday, ending 15.40 points, or 0.03%, higher at 59,752.70, suggesting a possible respite before the next leg higher. Last week, the index had a 1.5% increase and created a powerful bullish candlestick on the weekly chart.
“Momentum indicators are still solidly in the bullish camp on daily, weekly, and monthly timeframes. The index’s weekly closing above the upper Bollinger Band highlights the strength of this rally, which is usually linked with strong follow-through. The RSI is increasing within the super-bullish zone. Bulls are still in charge, according to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, as other indicators support this favorable situation.
He thinks the Bank Nifty is in a good position to rise to 60,300 and ultimately 61,000. Support is positioned between 58,800 and 58,700, which is the 20-day EMA.
According to Shah, “Bank Nifty is likely to continue leading the broader market move because the technical picture strongly favors buyers.”
Because of the strong technical structure, buying on dips is still the recommended strategy for the Bank Nifty, according to Ravi Singh, Chief Research Officer at Master Capital Services Ltd.
The next important support at 58,800 serves as a protective stop-loss, and new long positions may be started between 59,400 and 59,300. With momentum still strong, Bank Nifty looks well-positioned to continue its upward trend toward the 60,300 mark in the foreseeable future, according to Singh.
