Nifty 50, Sensex today: What to expect from Indian stock market in trade on September 2

Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a muted note tracking mixed global market cues.

The trends on Gift Nifty also indicate a flat start for the Indian benchmark index. The Gift Nifty was trading around 25,415 level, a premium of nearly 18 points from the Nifty futures’ previous close.

On Friday, the domestic equity market ended higher with the benchmark Nifty 50 hitting a fresh record high.

The Sensex rose 231.16 points to close at 82,365.77, while the Nifty 50 settled 83.95 points, or 0.33%, higher at 25,235.90.

Nifty 50 formed a small negative candle on the daily chart with minor upper and lower shadow.

“Technically, this is indicating a formation of a doji type candle pattern at the new highs. Normally, such doji formations at the new highs alerts for trend reversal, but recently few such doji formations have failed to result in any significant reversal in the market,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He believes the short term trend of Nifty remains positive, but the market is not able to gather sharp upside momentum into new highs. One may expect further consolidation or minor dip from near the resistance of 25,300 - 25,400 levels.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty 50 Prediction

Nifty 50 index continued with follow-through upmove on August 30 amidst tight range movement and closed the day higher by 83 points after registering all time high at 25,268.

“The market strength is likely to persist as long as the index stays above 25,000. A drop below this level could trigger a significant correction. On the upside, the current optimism could drive the index towards 25,500 in the near term,” said Rupak De, Senior Technical Analyst, LKP Securities.

According to Aditya Agarwal, Head of Derivatives and Technical at Sanctum Wealth, Nifty 50 will find immediate resistance around 25,300 levels and can see some consolidation around those levels.

“Overall, short term structure looks positive and any profit booking pullback towards 25,100 - 25,000 can be used to enter fresh long positions,” Agarwal said.

VLA Ambala, Co-Founder of Stock Market Today believes that caution is advised as Nifty 50 is currently in an overbought zone, with RSI readings of 67 on a daily, 74 on a weekly, and 81 monthly, suggesting a possible correction over the next 3-6 months.

“Amid these situations, the Nifty index can expect support levels around 25,170, 25,080, or 25,000 whereas resistance will likely be between 25,300 and 25,410,” Ambala said.

Bank Nifty Prediction

Bank Nifty index rose 198.25 points, or 0.39%, to close at 51,351.00, forming a bearish candlestick pattern.

“Bank Nifty has been sluggish overall, as compared to Nifty index, with the 50 EMA zone at 50,800 levels maintained as an important support and upside would need a decisive breach above 51,800 zone to establish strength. The index has further targets of 53,500 and 55,000 levels once the 50,800 zone is decisively sustained,” said Vaishali Parekh, Vice President - Technical Research at PL Capital - Prabhudas Lilladher.

According to her, Bank Nifty would have the weekly range of 50,300 - 52,500 levels.

Amol Athawale, VP-Technical Research, Kotak Securities noted that for Bank Nifty, the 50-day SMA (Simple Moving Average) or 51,550 would be the immediate resistance zone. Post 51,500 breakout it could rally up to 52,000 - 52,500.

“On the other side, 51,000 or 10 day SMA would be the key support zone. Below the same, the sentiment could change. Below which it could slip till 20 day SMA or 50,625 - 50,500,” Athawale said.

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 making any investment decisions.