BackNifty 50, Sensex today: What to expect from stock market indices in trade on October 4
The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading at around 19,450 level as compared to the Nifty futures’ previous close of 19,563.
PremiumThe Indian stock market indices, Sensex and Nifty 50, are likely to open lower on Wednesday tracking negative cues from global peers.
The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading at around 19,450 level as compared to the Nifty futures’ previous close of 19,563.
The domestic equity indices gave up previous day’s gains and closed around half a percent lower on Tuesday. The Sensex declined 316 points to end at 65,512, while the Nifty 50 fell 110 points to 19,529 on October 3.
Nifty 50 formed a small negative candle on the daily chart, post small upside bounce.
“Technically, this pattern reflects lack of strength in the market to sustain the highs. The support area on the weekly chart (10 week EMA) has been violated again on the downside at 19.560 levels. The overall chart pattern indicates weak bias for the Nifty ahead," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
The larger degree of positive pattern like higher tops and bottoms is intact as per daily/weekly chart. As long as Nifty 50 manages to sustain above the previous higher bottom of 19,223 levels, the chances of sustainable upside bounce could be alive, he added.
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According to Shetti, the short term trend of Nifty 50 continues to be negative and the market is now placed at the edge of downside breakout of 19,500 levels.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50
The Nifty 50 witnessed selling pressure following volatility on Tuesday.
“Towards the downside, the index found support at the ascending trendline on the daily chart. The sentiment looks pessimistic for the short term. Looking ahead, the level of 19,480 is expected to serve as a pivotal “make or break" point. If there is a decisive decline below 19,480, it might trigger heavy selling in the market," said Rupak De, Senior Technical analyst at LKP Securities.
On the upside, 19,600 will continue to remain a significant resistance level, he added.
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Bank Nifty
The Bank Nifty index lost 185 points to end at 44,399 on Tuesday and formed a bearish candlestick pattern with a lower shadow.
“The Bank Nifty bulls have successfully defended the crucial support level of 44,200, which is being seen as a make-or-break point for the index. On the upside, the index faces resistance around the 44,800 mark. It’s worth noting that the index is still trading below its 20-day moving average (20DMA), suggesting a cautious “sell on rise" sentiment in the market," said Bank Nifty from Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Also Read: Global market update: Dow Jones falls over 400 points as jobs data adds to rate worries
Currently, the Bank Nifty is consolidating within a broad range of 44,200 to 44,800, and a decisive break on either side, confirmed by a closing basis, is expected to determine the continuation of the prevailing momentum, Shah 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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