Nifty 50, Sensex today: What to expect from Indian stock market in trade on August 29

Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Thursday tracking losses in global peers.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 25,002 level, a discount of nearly 55 points from the Nifty futures’ previous close.

On Wednesday, the domestic equity indices ended marginally higher, with the benchmark Nifty 50 hitting record high during the session.

The Sensex gained 73.80 points to close at 81,785.56, while the Nifty 50 settled 34.60 points, or 0.14%, higher at 25,052.35.

Nifty 50 formed a small positive candle on the daily chart at the new highs with minor upper shadow.

“A type of doji pattern, not a classical one. This pattern is signaling a presence of strong resistance around 25,100 levels. At the same time, still there is no confirmation of any reversal pattern unfolding at the higher levels,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He believes the underlying trend of Nifty remains positive and further consolidation or minor dip from here is likely to create space for a decisive upside breakout of the hurdle at 25,100 levels.

A sustainable upside breakout from here could open the upside target of 25,360 levels in the near term as per Fibonacci extension, Shetti said.

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

Nifty 50 Prediction

Nifty 50 hit a new all-time high on August 28, but was not able to sustain the highs and ended with minor gains.

“The Nifty continues to exhibit confusion at higher levels, as the index closed flat with wicks on both the upper and lower sides, indicating extended indecisiveness. This is highlighted by two consecutive doji-like candles following the recent rally on the daily timeframe,” said Rupak De, Senior Technical Analyst, LKP Securities.

According to him, decisive move above 25,100, or a close above this level, could confirm a further rally in the market.

“Otherwise, Nifty may slip lower, as the absence of sustained buying might trigger selling pressure. The immediate support is placed at 24,800,” he added.

VLA Ambala, Co-Founder of Stock Market Today noted that Nifty formed a ‘Spinning Top’ candlestick pattern on the daily chart, with RSI readings of 66 on the daily, 74 on the weekly, and 81 on the monthly timeframes.

“The current market is dominated by high trading volumes, so investors are advised to exercise caution, especially when planning to hold an investment for less than 8 months. While certain stocks are trading at a dip, there’s a possibility of further corrections,” Ambala said.

According to her, Nifty can expect support levels between 24,920, 25,040, or 24,870, while resistance could be noticed around 24,180 and 25,230 in today’s session.

Aditya Agarwal, Head of Derivatives and Technical at Sanctum Wealth is of the view that the Nifty 50 index will continue to consolidate between 24,950 - 25,100 levels and will be highly volatile in Thursday’s session due to monthly derivatives settlement.

“Move towards 25,100 - 25,140 can be used as profit booking opportunity from trading positions in Nifty as markets can see profit booking from higher levels. On the lower side, 24,920 - 24,880 will be a strong support zone for the index,” Agarwal said.

Bank Nifty Prediction

Bank Nifty index ended 134.90 points, or 0.26%, lower at 51,143.85 on Wednesday, forming a small bearish candlestick pattern on the daily charts.

“Bank Nifty continued to see selling pressure around its resistance levels of 51,300 and once again failed to breach that. Bank Nifty is stuck in a narrow range of 50,900 - 51,300 and breach of this range will further set the direction for the index from a short term perspective,” Agarwal said.

Weekly options concentration are indicating a few more sessions of consolidation in Bank Nifty at current levels, he added.

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.