Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Monday tracking gained in global peers amid positive sentiment.
The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 25,060 level, a premium of nearly 145 points from the Nifty futures’ previous close.
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On Friday, the Indian stock market benchmark indices ended with robust gains, snapping their five-day losing streak and logged their best session in seven weeks, led by heavy value-buying at lower levels.
The Sensex soared 1,292.92 points, or 1.62%, to close at 81,332.72, while the Nifty 50 settled 428.75 points, or 1.76%, higher at an all-time closing high of 24,834.85.
Nifty 50 formed a long bull candle on the daily chart that has taken out the downward correction of the last five sessions in one day.
“This is a positive indication and this signals a decisive upside reversal in the market post downward correction. The immediate supports like 10/20-day EMAs (Exponential Moving Average) have been regained after violating below it recently. These moving averages have been offering support for the Nifty in the last 5-6 weeks. The positive chart pattern like higher tops and bottoms is intact on the daily chart and Nifty seems to have confirmed a new higher bottom formation recently,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He believes the short-term trend of Nifty has turned positive and the next upside levels to be watched are around 25,000 – 25,100 in the near term.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 Prediction
Nifty 50 index witnessed an excellent bounce back on July 26 and closed the day with hefty gains of 428 points above the 24,800 level.
“The Nifty has experienced a downward consolidation breakout on the daily chart, suggesting a rise in optimism. A sustained trade above the very short-term moving average, the 21 EMA, gave the index bulls the strength to take the Nifty to new highs amid global market weakness. A fairly large green candle after several insignificant candles clearly signals a bullish trend ahead,” said Rupak De, Senior Technical Analyst, LKP Securities.
He believes the trend might remain positive as long as it stays above 24,500 and on the higher end, the index might move towards 25,250.
According to VLA Ambala, Co-Founder of Stock Market Today, during Friday’s session, intraday dips were seen as buying opportunities, with the Nifty maintaining a healthy uptrend.
“The price recently found support at its 20-day EMA, which is expected to be the main support in the coming weeks. Furthermore, Nifty formed a Bullish Marubozu candlestick pattern during the session, indicating that on Monday, the market session may begin with a gap-up opening. However, current RSI readings for the index show 70 for daily, 77 for weekly, and 81 for monthly timeframe, reflecting a significantly high valuation on the higher frame,” Ambala said.
After considering these aspects, she recommends investors remain cautious and hold their positions. The India VIX was trading at 12, suggesting a cool-down in volatility and according to Ambala, this made options cheaper, making hedging strategies ideal for the current situation.
Analyzing the market, the benchmark index Nifty can find its support between 24,720 and 24,680 and meet resistance around 24,970 and 25,050 levels, in today’s session, she added.
Bank Nifty Prediction
Bank Nifty index jumped 407.20 points, or 0.8%, to close at 51,295.95 on Friday and formed a long bullish candlestick pattern on the daily charts.
“On the daily chart of Bank Nifty, an outside day pattern has formed, suggesting a possibility of price expansion. Additionally, the index has reclaimed the 50-period exponential moving average. Over the short term, the trend might witness a bullish reversal. Going forward, a move above 51,500 might induce a decent rally towards 52,500,” De said.
According to him, on the lower end, support is placed at 51,000.
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.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
