Nifty 50, Sensex today: What to expect from stock market indices in trade on October 17

The Indian stock market indices, Sensex and Nifty 50, are likely to open in the green Tuesday led by positive global cues.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 19,819 level as compared to the Nifty futures’ previous close of 19,733.

The equity indices ended Monday’s choppy session lower, extending the decline for the third consecutive session.

The Sensex ended 115.81 points lower at 66,166.93, while the broader NSE Nifty 50 declined 19.30 points to settle at 19,731.75.

Nifty formed a small body of negative candle with minor upper and lower shadow. 

“Technically, this pattern signals formation of doji or a high wave type pattern. But, having placed beside the long bull candle of Friday, this market action suggests a range bound movement for the Nifty,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

According to Shetti, the short term uptrend status of the market remains intact and positive chart pattern like higher tops and bottoms are also valid. 

Also Read: 6 things that changed for the stock market overnight - Gift Nifty to rally on Wall Street

“Nifty on the weekly chart sustained above the 10 week EMA and bullish candlestick pattern was formed in the last few weeks. This is a positive indication for the near term. The short term trend of Nifty remains choppy. The range bound movement is expected to continue for the next session,” he said.

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

Nifty 

The benchmark Nifty 50 index remained sideways as market participants stayed on the sidelines ahead of the scheduled speech by the Fed Chairman on Thursday. 

“Over the near term, the index may experience volatility, with support placed at 19,700. A drop below 19,700 may take the index toward the range of 19,600-19,550. However, the "buy on dips" strategy is expected to remain the preferred approach as long as it sustains above 19,550,” said Rupak De, Senior Technical analyst at LKP Securities.

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Bank Nifty 

The Bank Nifty consolidated on Monday and ended the session 62 points lower at 44,226.

“In the near term, weakness may persist in the banking sector as the index has stayed below the critical short-term moving average. Over the short term, the index might maintain a negative to sideways trend as long as it remains below 44,700,” De said.

According to him, Bank Nifty’s support is situated at 44,000-43,800.

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