Nifty 50, Sensex today: What to expect from Indian stock market in trade on February 5
- Nifty 50, Sensex today: The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 23,838 level, a premium of nearly 53 points from the Nifty futures’ previous close.
The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday, tracking upbeat global market cues.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 23,838 level, a premium of nearly 53 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity market ended sharply higher, with the benchmark Nifty 50 closing above the 23,700 level.
The Sensex jumped 1,397.07 points, or 1.81%, to close at 78,583.81, while the Nifty 50 settled 378.20 points, or 1.62%, higher at 23,739.25.
Nifty 50 has validated an inverse head-and-shoulders pattern on the daily chart, closing firmly above the neckline at 23,680.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Prediction
Sensex witnessed a sharp bounce back on Tuesday and closed higher by 1,397 points.
“Technically, after a gap-up opening, the Sensex successfully cleared the 77,800 resistance zone, and post-breakout, the positive momentum intensified. Additionally, a bullish candle on the daily charts and an uptrend continuation formation on the intraday charts indicate further upward movement from the current levels. We believe that the current market texture is bullish, and ‘buy on intraday dips and sell on rallies’ would be the ideal strategy for day traders,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
According to him, for traders, 78,100 and 77,800 would be the key support zones, while 78,700 - 78,900 could act as key resistance areas for the bulls.
Nifty 50 Prediction
Nifty 50 witnessed an excellent upside breakout on February 4 and closed the day higher by 378 points.
“Nifty 50 formed a long bull candle on the daily chart that has surpassed the hurdle of 23,600 levels and regained lost 200-day EMA (Exponential Moving Average). Technically, this pattern indicates a decisive upside breakout in the market. The swing low of Monday at 23,222 could now be considered as a new higher bottom of the bullish chart pattern and this also signal negation of previous bearish pattern like lower tops and bottoms. This is a positive indication,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the short term trend of Nifty 50 is sharply up and having moved above the immediate hurdle at 23,600 levels, the market could now zoom towards the upper 24,000 levels in the near term. Immediate support is placed at 23,550.
Dr. Praveen Dwarakanath, Vice President of Hedged.in, noted that the Nifty 50 continued its upside journey towards the resistance of the 23,800 level after taking support from the middle of the Bollinger band, indicating strength in the index.
“The momentum indicators on the hourly chart continue to show positive momentum, indicating bullishness in the index. Nifty 50 index formed a professional gap after the previous session’s fall, suggesting the momentum to continue to the resistance at the 23,800 level. Options writer’s data for the weekly expiry showed increased writing of puts at the 23,800 and below levels and a short covering in the ITM calls, indicating a bullishness in the index,” said Dwarakanath.
According to VLA Ambala, Co-Founder of Stock Market Today, on technical charts, Nifty 50 closed at the resistance level of 23,500, supported by its 50-day EMA.
“The RSI of the benchmark index stood above 55 on the daily chart, indicating moderate buying opportunities. However, I recommend those using the index as a benchmark to explore stocks that declared profits in Q2 and Q3 and are at par with sector valuations. Considering these aspects, we can expect Nifty 50 to gather support between 23,600 and 23,700 and experience resistance between 23,850 and 23,950 in the next session,” Ambala said.
Bank Nifty Prediction
Bank Nifty ended the session at 50,157.95, surging 1.93%, and reclaiming the psychologically important 50,000 level after a prolonged consolidation phase.
“On the daily chart, the Bank Nifty index formed a robust bullish candle signalling renewed strength. Nifty Bank is now holding above its 20-day moving average (DMA). The index is positioned above the 38.2% Fibonacci retracement level, placed around 50,120, indicating a potential shift in momentum favouring the bulls,” said Om Mehra, Technical Analyst, SAMCO Securities.
On the downside, immediate support is firmly placed at 48,500, while the resistance level stands at 50,820, aligning with the 50% Fibonacci retracement level, he added.
Dr. Praveen Dwarakanath said that the Bank Nifty closed above the upper part of the Bollinger band, indicating strength in the index.
“Bank Nifty index took support from the middle of the Bollinger band and bounced, indicating bullishness in the index. Bank Nifty index has formed a strong bullish candle with momentum indicators sloping upside, indicating further upside potential. The ADX DI+ line has crossed above the ADX DI- line with the ADX average line sloping upside, indicating strength in the rally,” Dwarakanath said.
According to him, options writer’s data for the monthly expiry showed increased writing of the puts at the 50,000 and below levels, indicating bullishness in the index, 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.
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