The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat on Thursday amid weak global market cues.
The trends on Gift Nifty indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 24,665 level, a premium of nearly 25 points from the Nifty futures’ Tuesday's close.
On Tuesday, the domestic equity market indices ended marginally higher, with the benchmark Nifty 50 closing above 24,600 level.
The Sensex rose 51.69 points to close at 80,716.55, while the Nifty 50 settled 26.30 points, or 0.11%, higher at 24,613.00.
Indian stock market remained closed on Wednesday on account of Muharram 2024.
Nifty 50 formed a small candle on the daily chart with almost identical open and close.
“This candle pattern is indicating a formation of doji type pattern at the highs, which is back-to-back in the last two sessions. Normally such doji formations at the new highs is not a good sign for the market at the highs. formation of one more doji with small range movement in the next session could possibly confirm a reversal pattern after confirmation,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He believes the near-term uptrend of Nifty remains intact. Though, Nifty is consolidating at the higher levels, still there is no confirmation of any significant reversal pattern building at the highs. Further upmove from here could pull Nifty towards 24,900 levels in the next week, he added.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Analysing the Nifty Open Interest (OI) data, Mandar Bhojane, Research Analyst at Choice Broking noted that on the call side, the highest OI was observed at the 24,700 and 25,000 strike prices, while on the put side, the highest OI was at the 24,000 strike price.
Nifty 50 continued the choppy movement and closed higher by 26 points higher on July 16 amidst narrow range movement.
“The support zone for Nifty is at 24,500 - 24,400, which is expected to see buyers stepping in when there are dips. However, it's not entirely clear if the trend will continue at higher levels. Nifty has surpassed the Golden retracement level of 24,610, and the next key level to watch for is around 24,700 - 24,750,” said Osho Krishan, Senior Analyst - Technical & Derivatives, Angel One Ltd.
Currently, market participants are closely monitoring sectoral rotation and thematic movers, which are playing a pivotal role in driving market trends. Krishan advises to continue observing and analyzing these movements until the key indices show a resurgence in momentum.
During Tuesday’s session, the Indian stock market reflected mixed sentiments, with the Nifty closing neutral to its previous day’s level, forming a Doji Star candlestick pattern on the daily timeframe.
“This movement reflects indecisiveness in the market even though the fundamental underlying trend remains bullish. The high index valuation and composition demand caution, particularly for short-term investors exploring index ETFs. Amid these, the defense sector is expected to remain in focus due to the current market valuation and trends. I would advise a cautious approach in the market,” said V.L.A. Ambala, Co-founder - Stock Market Today (SMT).
According to her, the Nifty is expected to find support between 24,550 and 24,470 and meet resistance at 24,680 and 24,740.
Bank Nifty index ended 59.10 points, or 0.11%, lower at 52,396.80 on Tuesday.
“Bank Nifty has been resisting near the 52,700 zone for quite some time and would need a decisive breach above that zone to continue again with the uptrend and scale for targets of 53,500 and 55,100 levels. The immediate support would be near the 51,900 zone which needs to be watched closely. Bank Nifty would have the daily range of 52,000 - 52,800 levels,” said Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher Pvt. Ltd.
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