The Indian stock market indices, Sensex and Nifty 50, are set to open on a muted note on Friday due to weak sentiment in the global markets. The Gift Nifty is trading around 24,834 level, indicating a tepid start for the Indian benchmark index. Despite this, on Thursday, the domestic equity benchmark indices ended higher, with the Nifty 50 closing above the 24,800 level. The Sensex gained 147.89 points, or 0.18%, to close at 81,053.19, while the Nifty 50 settled 41.30 points, or 0.17%, higher at 24,811.50.
Nifty 50 formed a small negative candle on the daily chart at the swing highs, suggesting a choppy movement at the resistance levels. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, Nifty is currently facing a hurdle at the previous opening downside gap of August 2 around 24,850 – 24,960 levels. However, there is no significant reversal pattern building at the highs yet. The short-term trend of Nifty remains positive, and a decisive upmove is expected to push Nifty towards a new all-time high of 25,100 levels in the near term.
Looking ahead, Nifty 50 is expected to continue its lackluster movement on the higher side and may extend towards the 25,000 level in the near term. Rupak De, Senior Technical Analyst at LKP Securities, mentioned that as long as Nifty remains above 24,650, sentiment may favor the bulls. VLA Ambala, Co-Founder of Stock Market Today, noted that despite a slight dip, the Nifty index remained above the 23,800 mark and is expected to touch its August monthly high soon. She recommends a ‚buy-on-dip‘ strategy for the next few days to take advantage of potential swing movements.
In terms of Nifty options trading strategy, Chandan Taparia, Senior VP, Equity Derivatives & Technicals at MOFSL, suggests initiating a Bull Call Spread by buying one lot of 24,800 Call and selling one lot of 25,000 Call to align with the bullish bias of the market. The Bank Nifty index ended higher at 50,985.70, forming a green Doji candlestick pattern. Vaishali Parekh, Vice President – Technical Research at PL Capital Group – Prabhudas Lilladher, mentioned that Bank Nifty would need to breach the resistance near the 51,000 zone to trigger a fresh upward move with targets of 52,600 and 53,500 levels in the coming days.
In conclusion, while the Indian stock market indices are likely to open on a muted note, there are opportunities for investors to capitalize on potential movements in Nifty 50 and Bank Nifty. It is essential for investors to stay informed and consult with certified experts before making any investment decisions. Stay updated with the latest Business News, Market News, and Breaking News Events by downloading The Mint News App for daily market updates.