Nifty 50, Sensex today: What to expect from Indian stock market in trade on April 16

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday, tracking weak global market cues.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 23,278 level, a discount of nearly 63 points from the Nifty futures’ previous close.

On Tuesday, the domestic equity market ended with sharp gains, extending its rally for the second consecutive session, with the Nifty 50 closing above 23,300 level.

The Sensex jumped 1,577.63 points, or 2.10%, to close at 76,734.89, while the Nifty 50 settled 500.00 points, or 2.19%, higher at 23,328.55.

Nifty 50 formed a small red candle with a lower shadow after a sharp upside gap.

“Technically, this market action could be an uptrend continuation pattern. Nifty 50 is now placed at the edge of the upside breakout of the hurdle of 200-day EMA (Exponential Moving Average) around 23,360 levels. The huge unfilled opening upside gaps of the last few sessions indicate bullish runaway gaps, which are normally formed in the middle of a trend,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the near-term uptrend of Nifty 50 remains intact and the next upside targets to be watched are around 23,650 and 23,870 levels in the next 1-2 weeks. Immediate support is placed at 23,200 levels.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty OI Data

Nifty Open Interest (OI) data shows the highest OI on the call side at the 23,400 and 23,500 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 23,200 strike price, marking it as a key support level, said Hardik Matalia, Derivative Analyst at Choice Broking.

Nifty 50 Prediction

Nifty 50 continued its excellent upward journey on April 15 and closed the day with hefty gains of 500 points.

“Nifty 50 index witnessed a strong gap up opening and remained resilient throughout the day, and oscillated within a narrow range without breaching either the intraday high or low, reflecting firm control by the bulls. This sharp recovery enabled Nifty 50 to reclaim all key short-term moving averages, with only the 200-day moving average, positioned near the 24,000 mark, remaining unconquered,” said Om Mehra, Technical Research Analyst, SAMCO Securities.

The daily RSI has staged a smart bounce from lower levels and is now placed near the 55 mark, suggesting bullish momentum is strengthening. The immediate resistance is placed around 23,520, while support remains at 23,200, he added.

“A breakout above the prior swing high of 23,870 could pave the way for a sustained rally toward new highs. The broader trend remains positive and as long as Nifty holds above the crucial support of 23,080, a ‘buy on dips’ approach continues to be favourable,” said Mehra.

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd, highlighted that the Nifty 50 formed a small red candle with a big bullish gap on the daily chart, highlighting a strong support zone at 22,920.

“On the upside, 23,390 will act as a key hurdle, where the 100-Day Simple Moving Average is placed. A sustained move above 23,390 – 23,400 could propel the index towards the 23,700 – 23,800 zone. Traders are advised to adopt a ‘buy on dips’ strategy,” Yedve said.

Bajaj Broking Research said in a note that the Nifty 50 index formed a hammer like candle with a bullish gap below its base (22,923 - 23,207) signaling extension of the strong up move for the second session in a row.

“We expect the Nifty 50 index to maintain positive bias and head towards 23,560 in the coming sessions week being the current month high. Volatility is expected to remain elevated amid Tariff related development and the progress of the Q4 earnings season. Immediate bias remains positive and only a breach below Tuesday low (23,207) can lead to some consolidation in the range of 23,300 - 22,700,” said Bajaj Broking Research.

VLA Ambala, Co-Founder of Stock Market Today, expects Nifty 50 to see support between 23,200 and 23,115 and meet resistance near 23,430 and 23,500.

Bank Nifty Prediction

Bank Nifty concluded Tuesday’s session with strong gains, rising 2.70% to close at 52,379.50, forming a small green candle on the daily chart.

“Bank Nifty formed a bull candle with a bullish gap below its base (51,244 - 51,863) signaling extension of the positive momentum. We expect Bank Nifty to maintain positive bias and head towards 53,000 levels in the coming sessions being the measuring implication of the recent 10 weeks range breakout (48,000 - 50,500),” said Bajaj Broking Research.

Volatility is expected to remain elevated amid Tariff related development and the progress of the Q4 earnings season. Immediate bias remains positive and only a breach below Tuesday low (51,863) can lead to some consolidation in the range of 51,000 - 52,000, the brokerage firm added.

Hrishikesh Yedve said that the Bank Nifty index decisively crossed the key resistance of 52,000 levels and formed a small green candle on the daily chart, indicating strength.

“The breakout level of 52,000 will now act as immediate support, and as long as the index sustains above this level, it has the potential to rally towards 52,700 - 52,800 levels, where the trend line resistance is placed. Hence, traders are advised to adopt a ‘buy on dips’ strategy,” Yedve said.

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.