Following increases in international markets, the major indices of the Indian stock market, the Sensex and Nifty 50, are probably going to open flat on Wednesday.
The Gift Nifty patterns also suggest that the Indian benchmark index is off to a slow start. The Gift Nifty was trading at a premium of around 23 points over the previous closing of the Nifty futures, at the 25,762 level.
The benchmark Nifty 50 closed above 25,700 on Tuesday, marking the second straight session that the Indian stock market has extended gains.
The Nifty 50 closed 42.65 points, or 0.17%, higher at 25,725.40, while the Sensex surged 173.81 points, or 0.21%, to close at 83,450.96.
What to anticipate from today’s Sensex, Nifty 50, and Bank Nifty is as follows:
Sensex Forecast
Sensex has a bullish candle on daily charts and is holding an uptrend continuation pattern on intraday charts, both of which are generally favorable.
We believe that the key support zones for traders continue to be 83,000 and 82,700. The bullish momentum is probably going to continue as long as the Sensex is trading above current levels. The bulls would immediately encounter resistance at 83,700 on the higher side. The index may move between 84,200 to 84,500 if there is a successful breakout over 83,800, according to Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Conversely, he stated that the upswing would become susceptible below 82,700.
Forecast for the Nifty 50
On the daily chart, the Nifty 50 created a respectable positive candle with a slight upper and lower shadow.
Technically speaking, this market activity indicates that the market is taking a break following a strong recovery in the previous session. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the pivotal barrier between the previous opening downward gap on February 13 has been fully filled on the upside at 25,750 levels.
He asserts that the Nifty 50’s underlying short-term trend is still favorable and that a clear break over the 25,750–25,800 barrier will probably spur bulls to take further action in the near future, moving the market higher toward 26,000 and then 26,350. The levels of immediate support are 25,600.
The Nifty 50 closed above its 100-DMA at 25,700, indicating improving strength, according to Nilesh Jain, VP-Head of Technical and Derivative Research at Centrum Finverse. However, the index encountered resistance at the 50-DMA, which is located at 25,750; a clear breakout above this level could open the door for additional upside towards 26,000.
“Immediate support has moved higher to 25,600 on the downside. The India VIX, however, experienced a significant cooling off, falling by almost 5% to fall below the 13 level. Any additional reduction in volatility is probably going to keep positive mood strong. “As long as the Nifty 50 stays above the 25,400 zone, a buy-on-dips strategy should be maintained,” Jain stated, adding that the overall structure still appears to be favorable.
According to Hedged.in Associate Vice President – HNI & Derivatives Riyank Arora, a clear breakout over 25,750 may pave the way for an upward rise towards 25,800 and then 25,900.
“A significant support is located close to 25,500, and 25,600 is still an immediate support on the downside. A breakout to the upside could bolster bullish momentum, but as long as the index stays above these support levels, the overall structure stays stable, according to Arora.
Bank Nifty Forecast
On Tuesday, the Bank Nifty index finished 224.90 points, or 0.37%, higher at 61,174.00. On the daily chart, it formed a bullish candle with a slight lower shadow, indicating ongoing buying activity at lower levels.
“The overall structure is still resolutely favorable, with Bank Nifty lingering near its all-time high. The upward alignment of all significant moving averages and the persistently strong positive undertone of momentum indicators support the continued trend. Technically speaking, the base of support has now moved upward. The 60,800–60,700 range is the immediate support zone and should provide a solid buffer during any intraday declines, according to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
According to him, the overall structure is still favorable for additional gains as long as the Bank Nifty index stays above 60,700. In the near future, it is probably going to test 61,600 and then the 62,100 mark.
As long as it remains above the breakout zone, Bajaj Broking anticipates that the Bank Nifty index will trade with a positive bias.
The Bank Nifty index is presently trading above its major moving averages, indicating that the rising trend may continue in the near future and confirming the strength of the current momentum. At 61,500, there is immediate resistance; at 61,800, there may be some profit booking. According to Bajaj Broking, a clear rise above these levels would prolong the current upward trend.
Regarding the downside, it stated that buyers are intervening at higher levels as support levels have moved higher to 60,800 and then 60,500.
