Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open with minor gains amid cautiousness following 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 24,840 level, a premium of nearly 30 points from the Nifty futures’ previous close.
On Thursday, the domestic equity market ended sharply higher, with the Nifty 50 settling at 24,800 level.
The Sensex rallied 626.91 points, or 0.78%, to close at 81,343.46, while the Nifty 50 settled 187.85 points, or 0.76%, higher at 24,800.85.
Nifty 50 formed a long bull candle on the daily chart after the formation of back-to-back two doji type candle patterns.
“This is a positive indication and indicates an upside breakout of small range movement. This also signals a negation of bearish doji patterns of recent. The upside momentum continued in the Nifty as per smaller degree higher highs and lows. The immediate support of 10-day EMA (Exponential Moving Average) continued to offer support during consolidations," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Nifty is now advancing towards a key overhead resistance of 24,960 and hence, one may expect volatility or consolidations around 24,950 - 25,000 levels in the short term, he added.
Here’s what to expect from Nifty 50 and Bank Nifty today:
In terms of Nifty Open Interest (OI) data, the highest OI on the call side was observed at the 25,000 and 25,300 strike prices, while on the put side, it was at the 24,500 strike price, said Mandar Bhojane, Research Analyst at Choice Broking.
Nifty 50 formed a range bound action in the previous couple of sessions and witnessed sharp upmove on July 18 and closed the day with handsome gains of 187 points.“The index remained volatile during the session, engulfing previous day’s doji pattern. The trend and momentum remain positive, with the index staying above critical short-term moving averages and a positive crossover in the daily RSI. In the short term, the trend is likely to remain positive as long as the index stays above 24,500," said Rupak De, Senior Technical Analyst, LKP Securities.
On the higher end, he believes the current trend might take the index towards 25,000 in the near term.
Despite overpricing, inflation, and climate-induced disasters expected to strain the food supply, the Indian stock market continues to show bullish sentiment, said VLA Ambala, Co-Founder of Stock Market Today.
In this circumstance, Ambala suggests swing and short-term traders remain cautious and focus on undervalued companies. According to her, for the next session, Nifty’s support level is expected between 24,740 and 24,800, and resistance levels between 24,860 and 24,940.
Bank Nifty index rallied 223.90 points, or 0.43%, to close at 52,620.70 on Thursday.
“Bank Nifty formed a bullish engulfing pattern following a consolidation. Additionally, the index found support at the 21-EMA, and the RSI has entered a bullish crossover. The trend is likely to remain positive as long as the index stays above 52,000," De said.
According to him, on the higher end, Bank Nifty might move towards 53,000 or 53,300 in the short term.
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