The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Thursday, amid cautious sentiment in global markets.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 25,171 level, a discount of nearly 40 points from the Nifty futures’ previous close.
On Wednesday, the domestic equity market ended marginally higher, with the benchmark Nifty 50 closing above the 25,100 level.
The Sensex gained 123.42 points, or 0.15%, to close at 82,515.14, while the Nifty 50 settled 37.15 points, or 0.15%, higher at 25,141.40.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex ended 123 points higher on Wednesday after experiencing selling pressure near the 82,700 levels.
“On daily charts, Sensex has formed a small Doji candlestick pattern, indicating indecisiveness between the bulls and bears. We believe that as long as the index trades within the 82,000 to 82,700 range, this range-bound behavior is likely to continue. A successful breakout above 82,700 could push Sensex up to the 83,000 – 83,300 levels,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
On the other hand, he believes, selling pressure is likely to accelerate below 82,000. If Sensex falls below this level, it could slip to the 81,700 – 81,500 range.
Nifty OI Data
Nifty Open Interest (OI) data shows the highest concentration on the call side at the 25,200 and 25,300 strike prices, indicating strong resistance at these levels. On the put side, significant OI build-up is observed at the 25,100 and 25,000 strike prices, marking these as key support zones, said Hardik Matalia, Derivative Analyst at Choice Broking.
Nifty 50 Prediction
Nifty 50 continued to face hurdle around 25,200 level on June 11 and closed the day higher by 37 points amidst choppy movement.
“A small green candle was formed on the daily chart with a long upper shadow. Technically this market action indicates a range bound action in the market at the highs. After breaking above the broader high low range of 24,500 – 25,000 levels recently, the market has failed to regain upside momentum post breakout in the last few sessions,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the near-term uptrend of Nifty 50 remains intact and the market is currently facing stiff resistance around 25,200 levels.
“A sustainable move only above 25,200 is likely to pull Nifty 50 towards another hurdle of 25,600 in a quick period of time. Immediate support is placed at 25,000 levels,” Shetti said.
Dr. Praveen Dwarakanath, Vice President of Hedged.in, noted that the Nifty 50 formed a spinning top type candle near its resistance of 25,200 level, indicating rejection from the resistance.
“The index rose above the upper Bollinger band, but could not sustain the level, indicating weakness in the index. The stochastics has moved to the over-bought region, indicating a small reversal, one can look to sell the index on the rise. Immediate support for the index is at 24,800, likely to move towards this level, before the next rally to come,” said Dwarakanath.
VLA Ambala, Co-Founder of Stock Market Today said that the Nifty index showed signs of indecision in the market by forming a high wave doji candlestick pattern on the daily chart, and even so, it closed above the 25,100 mark.
“This pattern usually suggests the market is facing some resistance, but a breakout could be around the corner. Since the overall trend is still positive, investors might consider adopting a buy-on-dips strategy for now. For the weekly expiry, it’s better to stay neutral, as the market could swing either way in the short term. Nifty 50 could find support around 25,020 and 24,970 and face resistance between 25,220 and 25,300,” Ambala said.
Bank Nifty Prediction
Bank Nifty index extended its decline for the third consecutive session and ended 169.35 points, or 0.30%, lower at 56,459.75.
“Bank Nifty index formed a small bear candle with a lower high and lower low highlighting profit booking after recent strong up move. Bank Nifty has recently generated a breakout above the upper band of the last 6 weeks range (56,000 – 53,500). We expect the index to maintain overall positive bias and head higher towards 57,300 levels in the coming sessions,” said Bajaj Broking Research.
According to the brokerage firm, the short-term structure remains constructive with immediate support placed at 55,900 levels being the last Friday’s breakout area. While key support is placed at 55,400 – 55,500 levels being the confluence of 20 days EMA and key retracement area.
According to VLA Ambala, Bank Nifty ended the day near 56,500 and formed a bearish pattern known as “three black crows” on the daily chart, which suggests profit booking.
“Still, Bank Nifty hit a fresh all-time high, supported by repo rate cuts. While the overall trend remains bullish, I suggest waiting for a more favourable entry point before any fresh investments. Bank Nifty may test the 56,100 and 55,550 range over the next 2 to 5 trading sessions,” Ambala said.
Om Mehra believes that the Bank Nifty index appears to be undergoing a minor correction, which may extend toward the previous support zone near 56,100 before resuming its upward move.
“Nifty Bank holds above all key moving averages, indicating that the broader trend remains intact. The daily RSI is placed at 63 and continues to slope upward, reflecting the overall strength and potential for continuation once consolidation ends. The support is seen at 56,100, followed by 56,000. As long as these levels hold, the ongoing decline can be considered a normal pause within the larger uptrend. A range-bound movement may continue in the upcoming session, unless key supports are breached,” said Mehra.
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.
