The Indian stock market indices, Sensex and Nifty 50, are expected to open higher on Monday, driven by positive global market cues. The Gift Nifty is trading around 24,915 level, indicating a premium of nearly 60 points from the Nifty futures’ previous close. This positive start comes after a flat close with a positive bias on Friday, where the Sensex gained 33.02 points to close at 81,086.21, and the Nifty 50 settled 11.65 points higher at 24,823.15.
Nifty 50 formed a small negative candle on the daily chart at the highs, within a narrow high-low range of around 90 points. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the market is currently facing resistance at the opening down gap of 2nd August around 24,850 – 24,950 levels. However, Nifty on the weekly chart formed a reasonable positive candle with a minor lower shadow, indicating a positive bias. Shetti believes that further upmove from here could pull Nifty 50 towards 25,000 – 25,100 levels in the near term.
Looking ahead, Rupak De, Senior Technical Analyst at LKP Securities, suggests that Nifty 50 continues to show a choppy movement and closed the day with minor gains on August 23. The market seems to favor a ‘buy on dips’ strategy while staying above 24,650, with resistance levels at 24,850 – 24,900/25,000. On the downside, a significant correction could be expected if the index falls below 24,650.
VLA Ambala, Co-Founder of Stock Market Today, advises market participants to avoid overbought stocks and consider safe profits. Despite challenges like inflationary pressure and unemployment, the Indian market is likely to continue gaining global interest. Nifty can expect support levels at 24,760 and 24,700, while resistance could be around 24,890 and 24,965 in the next session.
In terms of Bank Nifty, the index ended marginally lower on Friday, forming a bearish candlestick pattern on the daily charts. Amol Athawale, VP-Technical Research at Kotak Securities, suggests that the 20-day SMA or 50,700 would be the immediate reference point for the bulls. As long as Bank Nifty is trading above this level, the bullish sentiment is likely to continue, with potential upside targets at the 50-day SMA or 51,500 and even 51,800. On the downside, a break below 50,700 could see Bank Nifty retesting the levels of 50,250 – 50,000.
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