The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday led by a positive trend in the global markets.
Gift Nifty also indicates a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,395 level, a premium of nearly 55 points from the Nifty futures’ previous close.
On Wednesday, the domestic equity benchmark indices closed around half a percent lower each with the Nifty 50 ending below 24,400 level.
The Sensex tanked 426.87 points, or 0.53, to close at 79,924.77, while the Nifty 50 settled 108.75 points, or 0.45%, lower at 24,324.45.
Nifty 50 formed a reasonable negative candle on the daily chart with a long lower shadow.
“Formation of Wednesday’s negative candle has engulfed the small bull candle of Tuesday. This market action could be considered as a bearish engulfing pattern (not a classical one). Normally, such bearish candle formation at the highs or at the hurdle indicates caution for bulls for impending reversal pattern, post confirmation,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He noted the market has sustained above the immediate support of 10-day EMA around 24,180 levels. This moving average has been offering support for the Nifty in the last one month.
“The near-term uptrend status of the market remains intact. But the market seems to have started signs of profit booking around 24,400 – 24,500 levels. However, a move above 24,465 could negate this bearish setup,” said Shetti said.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
Analysing the Nifty Open Interest (OI) data, Mandar Bhojane, Research Analyst at Choice Broking said on the call side, the highest OI was observed at the 24,500 and 24,600 strike prices, while on the put side, the highest OI was at the 24,000 strike price.
Nifty 50 Prediction
Nifty 50 index slipped into profit booking from the new highs on July 10 and closed the day lower by 108 points with lower-level recovery.
“The bears remained at the helm as the index slipped by more than 100 points for the first time in many days. On the lower end, it found support just above the upper band of the rising channel. A bearish engulfing pattern has formed on the daily chart. Additionally, heavy call writing coupled with decent put unwinding ahead of the weekly expiry suggests the possibility of a correction,” said Rupak De, Senior Technical Analyst, LKP Securities.
According to him, immediate support is placed at 24,270 and below this level, the Nifty might fall towards 24,100 – 24,000. On the higher end, resistance is placed at 24,350-24,400. He expects another round of short covering above 24,400.
Bank Nifty Prediction
Bank Nifty index declined 379.50 points, or 0.72%, to close at 52,189.30 on Wednesday.
“The Bank Nifty index continued to witness selling pressure from higher levels and was unable to surpass the 52,500 mark, where call writers are active. The index is trading near a crucial support zone of 52,000 – 51,800. If it manages to hold this level, it can witness a pullback rally towards 52,500,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities/
A sustained move above 52,500 will open up gates for 53,000, but if it fails to hold the support of 51,800, it can decline further towards the 51,300 – 51,000 zone, Shah added.
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