The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open marginally higher on Wednesday, tracking mixed cues from global markets.
The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 25,675 level, a premium of nearly 32 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity market ended marginally higher, with the Nifty 50 holding above 25,500 level.
The Sensex gained 90.83 points, or 0.11%, to close at 83,697.29, while the Nifty 50 settled 24.75 points, or 0.10%, higher at 25,541.80.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex Prediction
Sensex formed a small candlestick on daily charts, and non-directional intraday activity on intraday charts indicate indecisiveness between the bulls and the bears.
“We believe that the current market texture is non-directional, perhaps with traders waiting for either side to make a breakout. For the bulls, the immediate breakout zone is 83,900. A successful breakout above this level could push Sensex toward 84,200 – 84,400. On the flip side, a dismissal of 83,500 could accelerate selling pressure. Below these levels, the index could retest 83,200 – 83,000,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Nifty OI Data
In the derivatives segment, Nifty open interest (OI) data showed the highest Call OI at the 25,600 strike, followed by 25,700, suggesting a potential resistance zone. On the Put side, the highest OI was seen at the 25,500 and 25,400 strikes, indicating strong support levels.
This OI setup suggests that the 25,500 – 25,600 zone will be crucial for the Nifty’s next directional move, said Hardik Matalia, Derivative Analyst at Choice Broking.
Nifty 50 Prediction
Nifty 50 was not able to show follow-through weakness on June 1 and closed the day higher by 24 points.
“Bullish chart pattern like higher tops and bottoms is in store on the daily chart and further consolidation or weakness from here could form a short term base for the market ahead. After the sharp upside breakout of broader high low range of 24,500 – 25,200 levels as per weekly chart in last week, the market consolidating from the highs and sliding down to the support of previous broken area around 25,300 levels could be a positive indication,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the near term trend of Nifty 50 remains positive, and further consolidation or weakness from here could find strong support around 25,400 – 25,300 levels, where one may expect sharp bounce from the lows.
“However, a decisive move above the high of 25.700 could open the next upside targets of around 26,000 – 26,200 levels in the near term,” Shetti said.
Dr. Praveen Dwarakanath, Vice President of Hedged.in, highlighted that the Nifty 50 index is trading near the upper Bollinger band, indicating strength in the move upside.
“The index has support at the 25,200 level and resistance at the 25,900 level. The smaller time frame momentum indicators are sloping upside, indicating a further rally from the current levels. The Keltner channel upper band level is placed at 25,430 which can act as an immediate bounce level in case of a move down,” said Dwarakanath.
VLA Ambala, Co-Founder of Stock Market Today, said that the Nifty 50 formed a ‘Star Doji’ and a ‘Bullish Homing Pigeon” candlestick pattern on the daily timeframe.
“Meanwhile, 25,460 will serve as an immediate support, and 25,630 as a resistance level. A breakout or breakdown from this range could lead to a fresh move of 1% to 2%. Considering these aspects, Nifty 50 should gather support between 25,460 and 25,300, and meet resistance near 25,630 and 25,850 in today’s trading session,” Ambala said.
Bank Nifty Prediction
Bank Nifty index advanced 146.70 points, or 0.26%, to close at 57,459.45 on Tuesday, and formed a high wave candle on the daily chart for the second session in a row, suggesting a phase of time-wise consolidation amidst stock-specific traction.
“Bank Nifty index is currently perched above its immediate support zone of 57,000 – 56,800. Sustaining above this demand zone will keep the short-term bias constructive, paving the way for a potential move towards 58,500 — a level derived from the measured move projection of the recent consolidation band between 56,000 and 53,500,” Bajaj Broking Market said in a note.
Conversely, a breach below 56,800 may trigger a corrective consolidation of the recent upswing, with the Bank Nifty index likely oscillating within a broader consolidation zone of 56,000 – 57,600, it added.
“Structural support is recalibrated to the 56,000 – 55,800 region, representing a confluence of key technical indicators — including the 50-day EMA and the 61.8% Fibonacci retracement of the recent rally (55,149 – 57,614),” said the brokerage house.
Hardik Matalia noted that the Bank Nifty formed a small bullish-bodied candle with a lower wick on the daily chart, indicating buying interest at lower levels.
“Bank Nifty index needs to hold above the key support of 57,000 to maintain its positive structure. A breach below this level could trigger extended selling pressure, dragging the index towards the 56,700 – 56,400 zone. On the upside, immediate resistance is seen around 57,600, while 57,800 – 58,000 remains a strong hurdle. A decisive breakout above this zone could open the doors for a strong bullish move towards new record highs,” said Matalia.
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.
