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

Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher Friday following a rally in global markets.

The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 24,330 level, a premium of nearly 160 points from the Nifty futures’ previous close.

On Wednesday, the domestic equity benchmark indices ended the choppy session marginally higher.

The Sensex gained 149.85 points, or 0.19%, to close at 79,105.88, while the Nifty 50 settled 4.75 points, or 0.02%, higher at 24,143.75.

Indian stock market was closed on Thursday on account of Independence Day 2024.

Nifty 50 formed a small negative candle on the daily chart, which is indicating a probable halt in downside momentum that triggered on Tuesday.

“This market action could be considered as a down trend continuation pattern. After the formation of a series of bullish patterns like higher tops and bottoms on the daily chart over the last few months, Nifty seems to have formed a new lower top on Monday at 24,472. Hence, further weakness from here could confirm this formation,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He noted that the immediate support of the ascending trend line has been broken on the down side recently and the significant opening downside gap of 5th August remains unfilled.

“This is a negative indication. A decisive move below 23,900 could trigger near term downward correction in the market,” Shetti said.

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

Nifty OI Data

Analysing the Nifty Open Interest (OI) data, Hardik Matalia, Research Analyst at Choice Broking revealed that the highest OI on the call side was observed at the 24,200 and 24,400 strike prices, while on the put side, it was concentrated at the 24,000 strike price.

Nifty 50 Prediction

Nifty shifted into a narrow range movement on August 14 and closed the day with minor gains of 4 points.

“Nifty remained sideways ahead of the US CPI inflation data release and the public holiday on Thursday. The overall trend is likely to remain weak, as the index continues to trade below the initial resistance level of 24,250. Additionally, the index has been sustaining below the middle Bollinger Band, confirming a weak near-term trend. This weakness might push the index towards 23,900 / 23,700,” said Rupak De, Senior Technical Analyst, LKP Securities.

On the higher end, he believes resistance is expected at 24,250 / 24,500 levels.

VLA Ambala, Co-Founder of Stock Market Today noted that the Nifty 50 index formed a small candlestick pattern on the daily chart between its 20-day and 50-day EMAs (Exponential Moving Average).

According to her, immediate support for Nifty can be expected between 23,950 and 24,000 in the next session, while resistance is expected between 24,365 and 24,750.

Bank Nifty Prediction

Bank Nifty ended 105 points lower at 49,727 on Wednesday, forming a small red Doji candlestick pattern below its 20-day and 50-day EMAs.

“The Nifty Bank index has underperformed the benchmark in the recent past and the index is now trading around its 50% retracement support around 49,650. There’s no strength seen at this support as of now and if the index breaks this level, then it could correct upto the 61.8% retracement level which is placed around 48,850,” said Ruchit Jain, Lead Research, 5paisa.com.

On the higher side, 50,550 and 50,850 are the immediate hurdles which need to be broken for a sustained positive momentum. Bank Nifty support is seen at 49,000 - 48,860 level, he added.

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