Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open in green amid mixed global cues.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,616.50 level, a premium of 87 points from the Nifty futures’ previous close.
On Friday, the domestic equity benchmark indices ended with strong gains, with the Nifty 50 closing above 24,500 level for the first time.
The Sensex jumped 622.00 points to close at 80,519.34, while the Nifty 50 settled 186.20 points, or 0.77%, higher at 24,502.15.
Nifty 50 formed a long bull candle on the daily chart with minor upper shadow.
“Technically, this pattern indicates an attempt of upside breakout of the hurdle around 24,400 - 24,450 levels. Nifty seems to have completed a one day dip recently and started to move up. Similar action was noticed on the daily chart on 24th June and the Nifty continued its upside momentum later," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He believes the short term trend of Nifty remains positive and having moved above the hurdle of 24,400 levels, there is a possibility of Nifty moving towards the next upside target of 24,950 levels in the near term.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 index showed an attempt of an upside breakout of the range on July 12, powered by IT the sector and closed the day higher by 186 points.
“The Nifty has given a consolidation breakout on the daily chart, driven by a strong technical breakout in IT giants. The sentiment looks positive from here, as the indicators and popular overlays indicate a continuation of strength. Support is visible at 24,400, where significant short buildup has been seen by the put writers. The buy-on-dips strategy should favor the street until Nifty falls below 24,400," said Rupak De, Senior Technical Analyst, LKP Securities.
On the higher end, he believes the current rally might extend towards 24,800.
VLA Ambala, Co-Founder of Stock Market Today believes the broader trend remains bullish but the high valuation continues to raise alarm for short-term traders and investors.
“In this situation, hedging positions and exploring dips as buying opportunities would be suitable. However, factors like US CPI data and the upcoming Union Budget are expected to add positive momentum to the market," said Ambala.
On the basis of these aspects, she expects Nifty’s key support levels between 24,480 and 24,350, and resistance between 25,630 and 24,700.
Bank Nifty index ended flat at 52,278.90 on Friday, forming a Doji candlestick pattern, indicating indecision in the market.
“The Bank Nifty remained volatile throughout the day before closing flat. Sentiment might continue to favor the bulls, as the index appears to have found support at the 21 EMA on the daily timeframe on Thursday. The buy-on-dips strategy looks best from the current perspective until it falls below 21,700," De said.
On the higher end, according to him, resistance is visible at 52,800; above 52,800, the index might continue its upward journey towards 54,000.
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