Nifty 50, Sensex today: What to expect from stock market indices in trade on October 16

The Indian stock market indices are likely to open flat Monday tracking weak global cues.

The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 19,724 level as compared to the Nifty futures’ previous close of 19,734.

On Friday, the Indian equity indices ended lower dragged by selling in index heavyweights. The Sensex fell 125.65 points, or 0.19%, to close at 66,282.74, while the Nifty 50 ended 42.95 points, or 0.22%, lower at 19,751.05. 

Nifty 50 formed a long bull candle on the daily chart upper shadow. 

“Technically, this market action signals an emergence of buying from the support of 19,650 levels and placement of overhead resistance at 19,800 levels. The positive chart pattern like higher tops and bottoms is intact as per daily chart and Friday's swing low of 19,635 could be considered as a new higher bottom of the sequence. Nifty also placed above the daily support of 10 and 20 period EMA around 19,680 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

According to Shetti, the short term trend of Nifty continues to be positive.

Also Read: 6 things that changed for the stock market over the weekend - Gift Nifty to falling US consumer sentiment

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

Nifty 50

On the weekly chart, Nifty formed a long bull candle at the lows, post hammer candle pattern of last week.

“The bulls were able to protect the level of 19600 during the day, thanks to the strong open interest (OI) build-up at the 19,600 strike price by put writers. The strength may continue as long as the index remains above 19,600. Only a decisive fall below 19,600 might trigger serious long unwinding in the market, till then a buy on dips strategy to favor the market,” said Rupak De, Senior Technical analyst at LKP Securities.

On the higher end, he believes resistance is visible at 19,850, and above 19,850, the index might move towards 20,000.

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Bank Nifty

The Bank Nifty index dropped 311 points to end at 44,288 on Friday.

“In the Bank Nifty index, the ongoing battle between the bulls and bears continued. Resistance is established at the 44,700 mark, while the support lies at 44,000. The overall market sentiment remains bullish as long as the critical support at 44,000 holds, and a breach below this level, confirmed by a closing basis, may lead to renewed selling pressure,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

According to Shah, on the upside, a substantial resistance level is placed at 45,000, and a breakout beyond this point is likely to trigger significant short-covering.

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