The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to have a strong opening on Tuesday, following gains in global markets. The trends on Gift Nifty also indicate a positive start for the Indian benchmark index, with Gift Nifty trading around 24,655 level, a premium of nearly 65 points from the Nifty futures’ previous close.
On Monday, the domestic equity market indices ended flat amid profit booking at higher levels. The Sensex eased 12.16 points to close at 80,424.68, while the Nifty 50 settled 31.50 points, or 0.13%, to close at 24,572.65. Nifty 50 formed a small negative candle on the daily chart with a minor lower shadow.
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the short-term trend of Nifty continues to be positive. Nifty is currently placed at the hurdle of the upper area of the previous down gap of 5th August at 24,685 levels. He believes there is a possibility of some more consolidation or a minor dip in the next 1-2 sessions before showing another round of upside breakout.
Nifty 50 Prediction:
Nifty 50 index took a breather on August 19 with range-bound action and closed the day higher by 31 points. Rupak De, Senior Technical Analyst at LKP Securities, mentioned that the Nifty remained range-bound throughout the day, appearing to pause before the next rally. The trend likely favors the bulls as long as it stays above 24,300. On the higher end, he believes the Nifty might move higher with resistances placed at 24,750 – 24,800.
VLA Ambala, Co-Founder of Stock Market Today, noted that the Nifty 50 is trading above the 20-day EMA on the daily chart and is around 13% away from its 20-month EMA. She suggested that all investors be cautious as Nifty is only 2% away from its all-time and monthly highs. Looking ahead, she expects immediate support for Nifty between 24,470 and 24,400 in the next session, while resistance is expected between 24,650 and 24,730.
Bank Nifty Prediction:
The Bank Nifty index remained choppy and ended with a loss of 149 points at 50,368 on Monday, forming a bearish candlestick pattern on the daily timeframe. Chandan Taparia, Head – Equity Derivatives and Technicals at MOFSL, mentioned that Bank Nifty formed a small bearish candle on the daily scale and is finding some pause near its 50 DEMA. He advised that it has to continue to hold above 50,250 zones for a bounce towards 50,750 then 51,000 levels, while support is seen at 50,250 then 50,000 zones.
In conclusion, the Indian stock market benchmark indices are likely to see a strong opening on Tuesday, with positive trends in global markets and Gift Nifty indicating a positive start for the Indian benchmark index. Investors should stay informed about the market predictions and trends to make informed investment decisions.