Nifty 50, Sensex today: What to expect from stock market indices in trade on September 29

The Indian stock market indices are likely to open on a cautious note amid mixed global cues.

The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading at around 19,629 level as compared to the Nifty futures’ previous close of 19,655.

The domestic benchmark equity indices ended nearly a percent lower on Thursday amid monthly derivatives expiry. The Sensex declined 610.37 points to close at 65,508.32, while the Nifty 50 plunged 192.90 points and settled at 19,523.55.

Nifty formed a long bear candle on the daily chart, which negated the positiveness created by the bullish candlestick pattern of Thursday. 

“Technically, the market action indicates weak bias and one may expect some more declines in the near term. Nifty has broken below the crucial weekly support of 10 week EMA (exponential moving average) at 19,560 levels and closed lower,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. 

The said weekly 10 period EMA has been offering support for the market in the last few months and that resulted in a decent upside bounces from the said support in the past. 

As per Shetti, having declined below this support this time, the market could slide down to its next support of 20 week EMA, which is currently placed around 19,230 levels.

Also Read: 10 things that changed for the stock market overnight - Gift Nifty, US GDP to Accenture’s muted earnings forecast

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

Nifty

The Nifty corrected sharply and was unable to maintain levels above 19,750. 

“On the daily timeframe, the most recent candle has engulfed the bodies of the preceding few days' candles, which suggests a negative sentiment. The prevailing sentiment continues to favor selling during rallies,” said Rupak De, Senior Technical analyst at LKP Securities.

Looking ahead, he believes the Nifty may decline towards 19,250, with immediate support situated at 19,450. Resistance is positioned at the higher end at 19,600.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — September 29

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Bank Nifty

The Bank Nifty witnessed a resurgence of bearish sentiment as the index declined 287 points to 44,301 on Thursday.

“Strong resistance has formed at the 20-day moving average (20DMA) located at the 45,000 mark. The immediate support on the downside is situated at 44,200, and a breach below this level could trigger further selling pressure, potentially taking the index down to the 43,800 mark,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

In this scenario, Shah advises to maintain a “sell on rise” approach as long as the index remains below the 45,000 mark.

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.