Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 31
- The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 21,617 level as compared to the Nifty futures’ previous close of 21,625.
The Indian stock market indices, Sensex and Nifty 50, are likely to open flat on Wednesday tracking mixed global market cues ahead of events like US Federal Reserve meeting outcome and India’s interim budget.
The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 21,617 level as compared to the Nifty futures’ previous close of 21,625.
The domestic benchmark indices witnessed a pullback and fell a percent each on January 30 with the Nifty 50 closing below 21,600 level.
The Sensex dropped 801.67 points, or 1.11%, to close at 71,139.90, while the Nifty 50 ended 215.50 points, or 0.99%, lower at 21,522.10.
Nifty formed a long negative candle on the daily chart, which indicates a formation of bearish dark cloud cover pattern after a reasonable upside. Technically, this formation signals some more weaknesses for the short term.
“Having bounced back sharply from the lows recently and forming a new swing high on Tuesday at 21,813 levels, there is a higher probability of Nifty showing upside bounces from the lows. The near-term uptrend remains intact and we expect present weakness to be a buy-on-dips opportunity,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.
The market could be waiting for a clear direction ahead of the key economic event of Union Budget 2024 on February 1.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Prediction
Nifty 50 exhibited volatility throughout the day with a prevailing bearish trend on Tuesday and ended 216 points lower.
“The daily chart indicates the formation of a dark cloud cover, implying a bearish outlook in the near term. Support is situated at 21,500 on the lower end. A significant decline below this level could potentially initiate a correction in the market,” said Rupak De, Senior Technical Analyst, LKP Securities.
Conversely, sustained trades above 21,500 might lead to an upward movement in the market, he added.
Also Read: Day trading guide for stock market today: Nine stocks to buy or sell on Wednesday — 31st January
Bank Nifty Prediction
The Bank Nifty remained under pressure and declined 75 points to close at 45,368 on January 30.
“The Bank Nifty index has encountered persistent resistance around the 45,500 level over the last two days. To initiate a sustained upward movement towards 46,000, the index needs to convincingly break through this resistance, which coincides with the highest open interest on the call side,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
According to Shah, the immediate support on the downside is situated at 45,000, and a breach below this level could intensify selling pressure, leading to a decline towards 44,700 - 44,500 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 taking any investment decisions.
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