The Indian stock market benchmark indices, Sensex and Nifty 50 are likely to open higher on Friday ahead of the Economic Survey 2025, amid positive cues from global markets.
The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 23,438 level, a premium of nearly 20 points from the Nifty futures’ previous close.
Investors will focus on Economic Survey 2024-2025 to be tabled in the Parliament today, ahead of the Union Budget 2025 on February 1.
On Thursday, the domestic equity market closed higher, with the Nifty 50 ending January F&O series above 23,200 level.
The Sensex rallied 226.85 points, or 0.30%, to close at 76,759.81, while the Nifty 50 settled 86.40 points, or 0.37%, higher at 23,249.50.
Nifty 50 formed a bullish-bodied candle with a long upper wick on the daily chart, indicating that the index is struggling to sustain higher levels.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex closed up by 227 points at 76,759.81 on Thursday, holding an uptrend continuation formation after a promising pullback rally, which is largely positive.
“A bullish candle on the daily charts and a higher bottom formation on the intraday charts indicate further uptrend potential from the current levels. For trend-following traders, 76,400 would be the key support level for Sensex. Above this level, the pullback formation is likely to continue. On the upside, Sensex could bounce back to 77,000 - 77,200,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Conversely, if Sensex falls below 76,400, the uptrend would be vulnerable and below this level, traders may prefer to exit their long positions, he added.
Nifty Open Interest (OI) data indicates the highest OI on the call side at the 23,300 and 23,500 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 23,200 and 23,000 strike prices, marking these as key support levels, said Hardik Matalia, Derivative Analyst at Choice Broking.
Nifty 50 continued its upside momentum for the third consecutive session on January 30 and closed the day higher by 86 points amidst volatility.
“Nifty 50 formed a reasonable positive candle on the daily chart with minor upper shadow. This market action is indicating strengthening upside bounce in the market. Having sustained above the initial hurdle of around 23,000 - 23,100 levels recently, the Nifty 50 is now placed at another important cluster resistance of around 23,350 - 23,450 levels,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the short-term trend of Nifty 50 continues to be positive and the present market action is signaling that the upside momentum has started to gain strength near the hurdle.
“A decisive upside breakout of 23,350 - 23,450 levels is likely to open sharp short covering and also broad-based buying in the market. Immediate support is placed around 23,100 levels,” Shetti said.
VLA Ambala, Co-Founder of Stock Market Today noted that the Indian stock market is likely to react to the Budget 2025 announcement in the coming days, and during this phase, she suggests investors to remain cautious and keep their portfolios hedged to handle the expected ups and downs.
“On technical charts, the benchmark Nifty 50 formed an inverted hammer candlestick pattern at the daily timeframe during Thursday’s session, indicating upper price rejection. Amid these developments, Nifty can expect support near 23,050 and 22,920, and resistance near 23,320 and 23,460,” Ambala said.
Bank Nifty index gained 146.00 points, or 0.3%, to close at 49,311.95 on Thursday, forming a bullish candle, indicating strength.
“Bank Nifty index has crossed and sustained above its 21-Days Simple Moving Average (21-DSMA) of 49,200, making it an immediate support level, while the previous breakdown point of 49,650 which will act as a key hurdle. As long as Bank Nifty holds above 49,200, bullish momentum is likely to continue, supporting a buy-on-dips approach,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta.
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