BackNifty 50, Sensex today: Key things to expect from in trade on September 28
The trends on Gift Nifty also indicate a flat-to-positive start for the Indian benchmark index. At 7.50 am, the Gift Nifty was trading at 19,717 as compared to the Nifty futures’ previous close of 19,719.65.
PremiumThe Indian stock market indices are expected to open flat amid nervousness in Asian market around Chinese economy after Evergrande’s shares were suspended from trading in Hong Kong.
The trends on Gift Nifty also indicate a flat to positive start for the Indian benchmark index. At 7.50 am, the Gift Nifty was trading at around 19,717 as compared to the Nifty futures’ previous close of 19,719.65.
On Wednesday, the domestic benchmark indices, Sensex and Nifty 50 bounced back snapping a six-day losing streak and settled higher on positive trends in Asian markets.
The Sensex closed 173.22 points higher at 66,118.69, while the Nifty 50 gained 51.75 points to end at 19,716.45.
Nifty formed a long bull candle on the daily chart with a long lower shadow.
“Technically, this market action is indicating a formation of a bullish engulfing pattern. Normally such bullish engulfing patterns after a reasonable decline or near the support signal chances of upside bounce in the underlying post confirmation," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
After the range bound movement in the last few sessions, the market showed a false downside breakout of the range in the early part of Wednesday before witnessing a sharp intraday upside bounce. Hence, there is a higher possibility of upside breakout of the narrow range at 19,750 levels.
According to Shetti, the short term trend of Nifty seems to have reversed up and a follow-through upmove could confirm a short term higher bottom reversal pattern.
Here’s what to expect from Nifty and Bank Nifty today:
Nifty 50
The Nifty showed a strong recovery on September 27 and found support at the 50-EMA (Exponential Moving Average).
“The day concluded with the formation of a bullish engulfing pattern. On the upper side, resistance is situated at 19,750. A clear breakout is necessary to anticipate a substantial rally in the index. A decisive move beyond 19,750 could potentially push the index towards 19,900," said Rupak De, Senior Technical analyst at LKP Securities.
On the downside, he added, support is established at 19,600.
Bank Nifty
The Bank Nifty bounced back from day’s low and ended 36 points lower at 44,588 on Tuesday.
“The Bank Nifty bulls displayed resilience by defending the key support level at 44,200, which coincided with the rising trendline support. However, the index is currently trading below its 20-day moving average (20DMA) positioned at 45,000. A decisive break above this level could trigger significant short-covering," said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Currently, the Bank Nifty is trading within a broad range of 44,200 to 45,000.
“A clear break on either side of this range will likely lead to trending moves. Nevertheless, within this range, the overall sentiment remains bullish, suggesting that a “buy on dip" approach may be favorable," 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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