Following weak global market cues, the key Indian stock market indices, the Sensex and Nifty 50, are probably going to commence the day on a sluggish note on Friday.
Additionally, the Gift Nifty trends show that the Indian benchmark index is off to a bad start. The Gift Nifty was down around 43 points from the previous closing of the Nifty futures, trading at a level of 25,613.
The Indian stock market had a spectacular bounce on Thursday, extending gains for the second straight session. The benchmark Nifty 50 closed over the 25,500 mark.
The Nifty 50 closed 261.75 points, or 1.03%, higher at 25,585.30, while the Sensex surged 862.23 points, or 1.04%, to close at 83,467.66.
What to anticipate from today’s Sensex, Nifty 50, and Bank Nifty is as follows:
Sensex Prediction
On daily charts, the Sensex displayed a bullish candle. On intraday charts, it is maintaining a generally good uptrend continuation shape.
Although we believe that the short-term market texture is optimistic, range-bound action may be imminent due to transient overbought conditions. 83,200 to 82,900 would now serve as important Sensex support zones for traders. The main resistance levels for the bulls on the upward side would be 83,800 and 84,000. However, the uptrend will become fragile below 82,900, according to Kotak Securities’ Head of Equity Research, Shrikant Chouhan.
Nifty OI Data
In the derivatives segment, the 25,600 and 25,700 strikes had the most Nifty Call Open Interest (OI), while the 25,500 and 25,400 strikes had the highest Put OI.
According to this OI configuration, there should be a solid support base between 25,500 and 25,400, and resistance should appear close to the 25,600–25,700 range. In the short term, a clear break above this resistance area would bolster bullish momentum even more, according to Choice Equity Broking’s Derivative Analyst-Research, Hardik Matalia.
Nifty 50 Prediction
A powerful bullish candle with a higher high and higher low was produced by the Nifty 50 index, indicating that the upward momentum would continue.
On the daily chart, a lengthy bull candle has emerged, surpassing the critical overhead resistance of 25,400 to 25,500 levels (the daily/weekly chart’s downward-sloping trend line). The price is currently on the verge of breaking out from its previous swing high of 25,669 in early July. The weekly chart still shows a larger degree bullish pattern with higher tops and bottoms, and the Nifty 50 is currently aligned with the sequence’s new higher top formation, according to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He believes that the Nifty 50’s fundamental trend is still bullish and that the market will probably rise much more in the near future.
“The Nifty 50 could move toward the next upward target of about 26,000 to 26,200 levels in the near term if it sustains a move above 25,600 to 25,700 levels,” Shetti stated.
The Nifty 50 index broke out above a significant falling trend line that connects all significant tops since the previous record high of 26,277, suggesting the possibility of additional upside in the upcoming sessions, according to Nilesh Jain, Head of Technical and Derivatives Research Analyst (Equity Research), Centrum Broking.
“New long positions are being formed on the derivatives front, which supports the bullish outlook. On both daily and weekly charts, momentum indicators and oscillators are still indicating a buy. Overall, the trend is still upward, with the Nifty 50 probably moving in the short term between 25,800 and 26,000 levels, while support has now moved higher to about 25,420, according to Jain.
The weekly chart’s momentum indicators show significant momentum and imply that prices can move substantially higher, according to Dr. Praveen Dwarakanath, vice president of Hedged.in.
Before this month’s expiration, the Nifty 50 is probably going to rise toward its all-time high of 26,250. On the weekly chart, the ADX DI-line slopes downward, suggesting more upside in the index, while the ADX DI+ line slopes higher. A close above the upper band in the upcoming days could indicate a walk on the band on the daily chart, according to Dwarakanath. The index closed close to the upper Bollinger band.
Bank Nifty Prediction
The Bank Nifty formed a bullish candle on the daily chart, indicating sustained strength, after rallying 622.65 points, or 1.10%, to close at 57,422.55 on Thursday.
Near the bullish gap zone, which is approximately 56,920, the Bank Nifty has immediate support. The current bullish momentum is probably going to continue as long as the index stays over 56,920. The Bank Nifty’s main upward resistance is situated close to 57,630. The rise may continue to 58,000–58,500 levels if the index maintains above this level. AVP Technical and Derivative Research at Asit C. Mehta Investment Intermediates Ltd., Hrishikesh Yedve, recommended traders to stick to a buy-on-dips approach in the Bank Nifty for the near future.
The Bank Nifty is trading above its important moving averages, which are rising, and momentum indicators are also suggesting that the market will continue to rise, according to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities. This supports the idea that there is strong support for the index’s upward trajectory.
“The Bank Nifty is probably going to continue its upward trend and test the level of 58,000 in the near future, given the current chart structure and momentum.” The range between 57,100 and 57,000 will serve as a critical support point on the downside, and a persistent move above it will maintain the bullish scenario, Shah stated.
Bank Nifty created a bull candle with a higher high and higher low as well as a bullish gap below its base, indicating that the upward momentum is still present, according to Bajaj Broking Research.
The short-term trend is still positive as long as prices stay above important moving averages. As predicted from the current dip of 54,226 the Bank Nifty index is expected to challenge our target of 58,000, which is the external retracement of the last up trend (161.8%) from 53,561 to 55,835. The gap area around 56,700 on Thursday will serve as the index’s immediate support. The uptrend appears to be strong, as indicated by the RSI (14) at 66, which shows solid momentum. In this positive setting, any declines should be seen as buying opportunities, according to Bajaj Broking Research.
