Sensex and Nifty 50 Poised for a Positive Start: What to Expect Today
Sensex and Nifty 50 Tracking Global Optimism
The Indian stock market is looking bullish as we head into Monday, with both the Sensex and Nifty 50 indices expected to open higher. This positive sentiment is being driven by strong cues from the global market.
Gift Nifty Signals a Strong Start
The Gift Nifty, a derivative contract that tracks the Nifty 50, is currently trading at around 24,930, indicating a solid start for the benchmark index. This is a premium of nearly 50 points from Friday’s close.
Friday’s Market Performance: A Strong Close
The domestic equity market ended on a high note Friday, with the Nifty 50 closing above 24,800. The Sensex surged by 769.09 points, or 0.95%, closing at 81,721.08, while the Nifty 50 gained 243.45 points, or 0.99%, to settle at 24,853.15.
Sensex Predictions: Bullish Outlook with Key Support and Resistance Levels
Support and Resistance
According to Amol Athawale, VP-Technical Research at Kotak Securities, the Sensex has formed a promising reversal formation and is currently trading above its 20-day short-term moving average, signaling a positive trend. Key support zones for short-term traders are identified at 80,900 and 80,500, while immediate resistance lies at 82,300. A successful breakout above 82,300 could propel the Sensex to 82,700 – 83,600. Conversely, a drop below 80,500 could shift the sentiment and lead to a decline to 80,300 or even 79,700.
Nifty 50 Predictions: Breakout Potential and Key Levels
Nifty 50 Outlook
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd., notes that while the Nifty 50 ended Friday with a gain of 0.99% at 24,853.15, it is still below the psychological resistance level of 25,000. He anticipates a move towards 25,200 – 25,250 if it successfully breaks above 25,000. On the downside, the 21-Day Exponential Moving Average (21-DEMA) at 24,480 provides support. As long as the Nifty 50 stays above this level, the chances of an upward breakout remain high.
Supporting Factors
Om Mehra, Technical Research Analyst at SAMCO Securities, points to the higher high formation on the daily chart, strengthening the uptrend. The Nifty 50 continues to oscillate around the 9 and 20 EMA, which have acted as support and resistance. He highlights supports at 24,600 and 24,550 and resistance near 25,080. The positive advance decline ratio signals healthy market breadth. A further drop in the India VIX below 17, ideally towards 16, would contribute to lower volatility and strengthen the bullish outlook.
Buy on Dips
VLA Ambala, Co-Founder of Stock Market Today, advises mid-term and long-term investors to use dips of 3% to 10% as buying opportunities. He suggests potential support levels at 24,750 and 24,660, while resistance is expected around 24,960 and 25,050.
Momentum and Support
Dr. Praveen Dwarakanath, Vice President of Hedged.in, observes that the Nifty 50 index has immediate resistance at 25,200 and support at 24,500. He points to the index’s momentum on the upside, indicating buying opportunities at dips. The Nifty 50 has found support from its 20-day moving average and bounced from the day’s opening, suggesting strength. The Bollinger band expansion suggests a potential rally from the current level. The ADX average line, along with the ADX DI+ line, are sloping upwards, indicating upward momentum. The stochastics are in the oversold region, suggesting bullishness will continue.
Bank Nifty Predictions: Positive Bias and Consolidation
Bank Nifty Outlook
Bajaj Broking Research predicts a positive bias for the Bank Nifty index, with a potential move towards the upper band of the last four weeks’ consolidation, around 55,800 – 56,000. They anticipate the index to remain within a broad range between 56,000 and 53,500 in the coming days. Only a move above 56,000 will signal a strong acceleration in the uptrend.
Support and Strength
Hrishikesh Yedve notes that the Bank Nifty formed a green candle following a hammer candle on the daily chart, indicating strength. He points out that resistance is near 55,700 levels. A sustained move above this level could lead to a test of new all-time highs. The 21-DEMA support level at 54,630 will be crucial. As long as the Bank Nifty stays above this level, its bullish momentum is expected to continue.
