Stock market today: The Indian stock market is likely to open higher on Wednesday following mixed global market cues.
The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 20,031 level as compared to the Nifty futures’ previous close of 19,953.
On Tuesday, domestic benchmark indices snapped two-day losing run to end higher. The Sensex gained 204.16 points to close at 66,174.20, while the Nifty 50 rose 95.00 points, or 0.48%, to end at 19,889.70.
The market, after consolidating for the past 7 trading sessions, finally gave a breakout and the Nifty 50 decisively crossed its resistance level of 19,875.
“The price action suggests that it was a short-covering rally. This is also corroborated by the option chain for the current month, where short covering was seen on the call side, and writing was seen on the put side. From here, Nifty may soon see the levels of 20,000 and above,” said Sheersham Gupta, Director and Senior Technical Analyst at Rupeezy.
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Nifty 50 formed a reasonable positive candle on the daily chart with lower shadow.
“After facing stiff resistance at the upper range of 19,875-19,900 levels in the last two weeks, the market is now placed at the edge of an upside breakout of range movement as well as the strong overhead resistance at 19,900 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Hence, he believes a sustainable move above 19,900 levels could result in Nifty 50 zooming towards new all-time highs in a quick period of time.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Examining the Open Interest (OI) data, Mandar Bhojane, Equity Research Analyst at Choice Broking said, the call side reflected the highest OI at the 20,000 level, followed by the 20,100 strike prices.
On the put side, the highest OI was observed at the 19,800 strike price.
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The Nifty 50 index demonstrated a breakout from a consolidation range with substantial volume.
“The Nifty has risen above the recent consolidation high, indicating increased optimism among market participants. Furthermore, it has held steady above the critical near-term support level of 19,700,” said Rupak De, Senior Technical analyst at LKP Securities.
He expects the sentiment to stay positive, potentially leading to a new lifetime high in the short term. At the lower end, 19,700 could remain a crucial short-term support level, he added.
The Bank Nifty index rallied 112 points to end at 43,881 on November 27.
“The Bank Nifty index has displayed a positive trend over the last three days, marked by higher highs and higher lows on the daily chart. Currently approaching a critical resistance level at 44,000, a successful breakout above this level on a closing basis is anticipated to trigger significant short-covering rallies toward 44,300 and 44,500 levels,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Meanwhile, the lower end finds support at 43,600, serving as a cushion for bullish positions, with potential upside targets identified at 44,300 and 44,500, he added.
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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