The Indian stock market is expected to open higher on Thursday tracking positive global cues. The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 19,215 level as compared to the Nifty futures’ previous close of 19,054.
The domestic equity indices continued to show a weak trend amidst range bound movement on Wednesday.
The BSE Sensex closed 283.60 points lower at 63,591.33, while the NSE Nifty 50 declined 90.45 points, or 0.47%, to end at 18,989.15 on November 1.
Nifty 50 formed a reasonable negative candle on the daily chart, which is back-to-back in the last couple of sessions.
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“Technically, this pattern indicates an emergence of selling pressure after the reasonable upside bounce and also formation of lower top around 19,230 levels. However, the selling momentum seems to have reduced recently as we observe weakness with range bound action in the last couple of sessions,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
He believes the short-term trend of Nifty 50 continues to be weak and expects the index to slide down to the lower support of 18,850 levels (200 day EMA) once again before showing another round of upside bounce from the lows.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Analyzing the Open Interest (OI) data, the highest OI for call options was observed at the 19,100 strike price, followed by the 19,200 strike price.
On the put side, the highest OI was found at the 18,900 strike price, noted Mandar Bhojane, Research Analyst, Choice Broking.
The Nifty 50 index faced selling pressure from higher levels but successfully held the 18,940 support level.
“Immediate resistance on the upside is identified at 19,100, and a breakout above this level may trigger short-covering moves toward the 19,250-19,300 range. Conversely, if the lower-end support at 18,940 is breached on a closing basis, it could intensify selling pressure, potentially pushing the index to new lows,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
The Bank Nifty index ended 145 points lower at 42,701 on November 1.
“The Bank Nifty index formed a doji candle, suggesting a state of indecision at the current levels, with a battle between bulls and bears. Immediate resistance is observed at 43,000, where significant open interest is concentrated on the call side. A breach above this level could trigger short-covering moves towards 43,500,” said Shah.
Conversely, he believes the lower-end support is positioned at 42,400, and if it is breached on a closing basis, it may escalate the selling pressure.
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 taking any investment decisions.
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