Nifty 50, Sensex today: What to expect from Indian stock market in trade on August 12 after Hindenburg report

Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a cautious note amid mixed global market cues and weak domestic sentiment after the new Hindenburg report against Sebi Chairperson Madhabi Puri Buch in the Adani Group case.

The trends on Gift Nifty also indicate a mildly negative start for the Indian benchmark index. The Gift Nifty was trading around 24,362 level, a discount of nearly 40 points from the Nifty futures’ previous close.

The stock market is expected to react to the latest investigative report by US-based short seller Hindenburg Research against Adani Group and Sebi Chairperson Madhabi Puri Buch, who have strongly denied all the allegations terming them as “malicious”, “baseless” and “devoid of any truth”.

On Friday, the domestic equity indices ended over a percent higher each led by a rally in index heavyweights.

The Sensex jumped 819.69 points, or 1.04%, to close at 79,705.91, while the Nifty 50 settled 250.50 points, or 1.04%, higher at 24,367.50.

Nifty 50 formed a small candle on the daily chart with minor upper and lower shadow and with gap up opening.

“Nifty is currently placed at the edge of the key resistance of around 24,350 – 24,380 levels, which is a lower end of previous sharp opening downside gap of August 5. Hence, further up move from here could possibly result in complete filling of the said gap around 24,690 levels,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

He believes the range movement of a few sessions is now on the verge of upside breakout. A decisive move above 24,450 levels could pull Nifty 50 towards the next hurdle of 24,700 levels in the near term, he added.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty OI Data

Analysis of Nifty put options reveals significant Open Interest (OI) at the 24,000 level, suggesting potential support there. On the call side, notable OI concentrations are observed at the 24,800 and 25,000 levels, said Mandar Bhojane, Technical Research Analyst at Choice Broking.

He advises traders and investors to look for buying opportunities during Nifty dips and to use appropriate stop-loss strategies below the identified support levels.

Nifty 50 Prediction

Nifty 50 witnessed a sustainable up move of 250 points on August 9 and closed near the day’s high.

“The weekly chart shows a bearish gap at higher levels, suggesting weakness, yet there is also some buying interest at lower levels. On the daily chart, after Monday’s sell-off, prices traded within a defined range of 24,000 – 24,400 throughout the week. The upper end of this range aligns with the 20 EMA (Exponential Moving Average) and the bearish gap, while the lower end coincides with the 50 EMA,” said Rajesh Bhosale, Equity Technical Analyst, Angel One.

Looking ahead to this week, he believes momentum could be triggered if prices break out of this range. According to him, a breakout above 24,400 – 24,450 might generate optimism, potentially filling the recent gap at 24,700.

“However, given the ongoing global uncertainty, any bounce could be an opportunity to reduce long positions. On the downside, support is seen at 24,100 – 24,000, and a break below this range could lead to further declines in the near term,” Bhosale said.

“Traders should closely monitor these levels and plan their trades accordingly. It’s also advisable to focus on stock-specific actions, adopting a selective approach. Since market movements were primarily driven by global cues, it’s essential to stay updated on those developments as well,” he added.

VLA Ambala, Co-Founder of Stock Market Today noted that while the RSI for the daily timeline has cooled down, the readings for the higher frames are still elevated, as seen from the reading of 68 on the weekly and 75 on the monthly time frames.

“My analysis suggests that there could be room for correction in the next 4-7 days. Nifty can expect support levels between 24,320 and 24,260 and face resistance around 24,440 and 24,530 in the next session,” Ambala said.

Bank Nifty Prediction

Bank Nifty index gained 327.80 points, or 0.65%, to close Friday’s session at 50,484.50.

“For Bank Nifty now, 50,000 would be the immediate reference point for the bulls. Above 50,000, it could bounce back up to 50,800 and 50 day SMA or 51,200. On the flip side, below 50,000 uptrend would be vulnerable. Below the same, we could expect 49,700 – 49,500,” said Amol Athawale, VP-technical Research, Kotak Securities.

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 making any investment decisions.