The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to see a tepid opening on Tuesday, amid ongoing concerns over the India-US trade deal and the new US H-1B visa fees hike.
The trends on Gift Nifty also indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 25,254 level, a discount of nearly 23 points from the Nifty futures’ previous close.
On Monday, the domestic equity market ended lower for the second consecutive session, with the benchmark Nifty 50 closing near 25,200 level.
The Sensex declined 466.26 points, or 0.56%, to close at 82,159.97, while the Nifty 50 settled 124.70 points, or 0.49%, lower at 25,202.35.
Here’s what to expect from Sensex, Nifty 50, and Bank Nifty today:
Sensex made a lower top on intraday charts and a bearish candle on daily charts, indicating further weakness from the current levels.
“We are of the view that, as long as Sensex is trading below 82,500 the weak sentiment is likely to continue. On the down side, it could slip till 82,000 - 81,700. On the flip side, 82,500 would act as a crucial resistance zone for day traders. If the index manages to trade above this level, it could move up to 82,800 - 83,000,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
He believes the current market texture is volatile, and hence, level-based trading would be the ideal strategy for day traders.
According to Mayank Jain, Market Analyst, Share.Market, immediate resistance for Sensex is seen in the 82,500 – 82,600 zone.
“A decisive breakout above this level could propel the index towards the 83,000 mark. On the downside, crucial support is seen in the 82,000 to 81,900 range. A breach of this support could see the index test the 81,500 level,” said Jain.
Nifty 50 index formed a high wave candle with a lower high and lower low, signaling profit booking for the second session in a row.
“A reasonable negative candle was formed on the daily chart with gap down opening and with a long upper shadow. Technically, this market action indicates continuation of short-term downward correction in the market with sell on rise,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the medium to long-term trend of Nifty 50 remains positive and the current weakness could be a buy-on-dips opportunity for the short term.
“Nifty 50 is expected to find support around 25,000 levels and is likely to bounce back from the lows. Immediate resistance is placed at 25,450,” Shetti said.
Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research), Centrum Broking Ltd. said that the 25,000 level remains a crucial psychological support, and as long as the Nifty 50 sustains above it, a buy-on-dips strategy remains appropriate.
“Momentum indicators and oscillators continue to signal strength on both daily and weekly timeframes. A decisive move above the 25,400 level will be essential to trigger the next leg of the uptrend,” Jain said.
Mayank Jain noted that immediate resistance for the Nifty 50 is seen in the 25,350 – 25,400 zone.
“A decisive breakout above this level could propel the index towards the 25,500 mark. On the downside, crucial support is seen in the 25,050 – 25,000 range. A breach of this support could see the index test the 24,800 level,” said Jain.
Bank Nifty index slipped 174.10 points, or 0.31%, to close at 55,284.75 on Monday, forming a bearish candle with a long upper shadow on the daily chart, signaling selling pressure at higher levels and a lack of follow-through on intraday gains.
“Technically, this reflects hesitation among buyers and a possible shift in short-term sentiment. The daily RSI is currently quoting at 54 and continues to trend downward, indicating a gradual loss of bullish momentum and suggesting that the Bank Nifty index may remain under pressure unless fresh buying emerges. The zone of 54,800 - 54,700 will act as crucial support for the index. While, on the upside, the zone of 55,600 - 55,700 will act as an immediate hurdle,” said Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities.
Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates Ltd noted that the Bank Nifty index formed a red candle on the daily scale, reflecting continued weakness.
“On the higher side, the immediate resistance is placed around 56,000 – 56,160, where major supply levels are observed. On the downside, immediate support is placed near 55,085, corresponding to the 34-DEMA, followed by 54,800. Hence, a buy-near-support and sell-near-resistance strategy is recommended in Bank Nifty,” said Yedve.
Om Mehra, Technical Research Analyst, SAMCO Securities highlighted that the Bank Nifty index now remains below the 100-SMA and 50-SMA. However, it continues to hold above the 9-EMA and 20-EMA, aligning with the recent breakout zone. A close below this zone may invite further weakness, whereas holding above the 100-SMA could help stabilise the short-term trend.
“The RSI has slipped to 54 from higher levels. This suggests it is cooling-off after the recent rally, while the MACD remains positive but with a flattening histogram. Importantly, Nifty Bank is holding near the 23.6% Fibonacci retracement placed at 55,250. The primary trend remains bullish, though near-term consolidation appears likely. The index needs to close above 55,700 to resume the uptrend; until then, it is expected to trade sideways,” said Mehra.
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.
