The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Tuesday following mixed global market cues.
The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 24,250 level, a premium of nearly 40 points from the Nifty futures’ previous close.
On Monday, the domestic equity indices ended higher, with the benchmark Nifty 50 closing above 24,100 level.
The Sensex rallied 443.46 points to close at 79,476.19, while the Nifty 50 settled 131.35 points, or 0.55%, higher at 24,141.95.
Nifty 50 formed a reasonable positive candle on the daily chart, that has placed beside the small negative candle of previous session.
“This is a positive indication and suggests that the minor negative sentiment created on Friday could be nullified in the short term. Positive chart pattern like higher tops and bottoms is intact. Having formed a minor higher bottom in the last week, the market is on the uprun to form another higher top of the pattern at the new highs. Still there is no confirmation of any higher top reversal forming at the highs,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He believes the underlying trend of Nifty remains positive. The market is racing towards the next upside target of 24,400 levels in the near term.
Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One noted that the markets commenced the month of July on a positive note, dismissing any overly stretched parameters.
“The sustained uptrend is driven by sectoral rotation, broader participation, and a notable absence of challenges and pessimism on a global scale. It’s imperative to recognize that the market is overly stretched from a technical perspective, necessitating caution and vigilance rather than complacency in response to the recent movement,” Krishan said.
On a level-specific front, he believes the 24,000 mark serves as a crucial support level and any decisive breakdown could only temporarily ease the overbought conditions. On the higher end, Nifty may encounter an intermediate hurdle around 24,200 – 24,250 for the upcoming session.
“Therefore, it’s advisable to take a pragmatic approach focusing on analyzing individual stocks. Simultaneously, thematic stocks have gained considerable traction in the current market scenario; hence, traders may find greater potential in focusing on these specific counters rather than solely on indices at their elevated levels,” Krishan 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 that on the call side, the highest OI was observed at the 24,500 and 24,700 strike prices. On the put side, the highest OI was at the 24,000 strike price.
Nifty 50 Prediction
Nifty 50 continued to show upside momentum amidst a range bound action on July 1 and closed the day higher by 131 points.
“The Nifty remained in the bulls’ grip as the index sustained above 24,000 in the initial trades, leading to a rally towards 24,150. Continuous short build-up by the put writers has been protecting the market from falling. Going forward, the trend might remain strong as long as it stays above 24,000. A fall below 24,000 might lead to a correction towards 23,850 / 23,700,” said Rupak De, Senior Technical Analyst, LKP Securities.
On the other hand, he believes a decisive move above 24,200 might take the index towards 24,500.
VLA Ambala, Co-Founder of Stock Market Today said Nifty 50 is likely to gain support between 24,000 and 23,930, and experience resistance between 24,220 and 24,290 levels in the next session.
Bank Nifty Prediction
Bank Nifty index rallied 232.50 points, or 0.44%, to close at 52,574.75 on Monday.
“The index has made a lower top on the hourly time frame, signifying weakening bullishness. Immediate support is visible at 52,500. A decisive fall below 52,500 might trigger a correction in the banking space. However, if it sustains above 52,500, the index might move back towards higher levels,” De said.
On the higher end, it might move towards 52,800 / 53,000 in the short term, he added.
According to Ambala, the Nifty Bank index can find support between 52,350 and 52,050, and record resistance between 52,750 and 53,150 levels.
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.
