Indian stock market benchmark indices, Sensex and Nifty 50, are likely to see a tepid opening on Wednesday following mixed global market cues.
The trends on Gift Nifty also indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 23,705 level, a discount of nearly 25 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity benchmark indices ended with sharp gains after hitting fresh record highs during the session.
The Sensex surged 712.44 points, or 0.92%, to close at 78,053.52, while the Nifty 50 settled 183.45 points, or 0.78%, higher at 23,721.30.
Nifty 50 formed a long bull candle on the daily chart, which is indicating a possibility of decisive upside breakout of broader range movement at 23,600 - 23,700 levels.
“One may expect upside momentum to pick up in the short term. The short-term trend of Nifty remains positive. The market is now showing early signs of upside breakout in the near term. The next upside levels to be watched are around 24,000," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50 index witnessed a sharp upmove on June 25 and closed the day higher by 183 points. The index registered new highs of 23,754 and closed near the highs.
“The Nifty continues to rise on the back of strength in the banking giants. The Nifty moved above 23,700 to make a new all-time high of 23,754, showing resilience amid global sluggishness. Put writers were very active at 23,600 and 23,700, while call writers unwound their positions, causing the PCR to rise. In the short term, the trend might remain strong as long as it stays above 23,500," said Rupak De, Senior Technical Analyst, LKP Securities.
On the higher end, he believes the index might continue moving towards 24,000 in the near term.
VLA Ambala, Co-Founder of Stock Market Today advises hedging positions to cushion risks where the valuations are very high. She believes Nifty could gain support between 23,660 and 23,600, and notice resistance around 23,790 and 23,900 levels.
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Bank Nifty index jumped 902.05 points, or 1.74%, to close at 52,606 on Tuesday.
“The Bank Nifty index broke above the resistance of 52,000, where the highest open interest was built up on the call side. The index is trading in a strong uptrend with higher highs and higher lows intact on the daily chart," said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
The support now stands at 52,000, and intraday dips should be viewed as a buying opportunity for targets of 53,000 / 53,500, 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 making any investment decisions.
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