The Indian stock market benchmark indices, Sensex and Nifty 50, are set to open on a muted note Wednesday, following the weakness in global markets. The trends on Gift Nifty also indicate a mildly negative start for the Indian benchmark index, with the Gift Nifty trading around 24,686 level, a discount of nearly 20 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity market indices ended half a percent higher each, with the Nifty 50 closing near the 24,700 level. The Sensex surged 378.18 points, or 0.47%, to close at 80,802.86, while the Nifty 50 settled 126.20 points, or 0.51%, higher at 24,698.85. Nifty 50 formed a small positive candle on the daily chart with a minor upper shadow.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, mentioned, “Currently, Nifty is in an attempt to break above the crucial opening downside gap of 5th August around 24,686 levels and closed slightly above it. This is a positive indication. The underlying trend of Nifty remains positive.” He further added that a sustainable move above the hurdle of 24,700 levels could open the next upside target of 25,000 – 25,100 in the near term.
Analyzing the Nifty open Interest (OI) data, Mandar Bhojane, Equity Research Analyst at Choice Broking, highlighted that the highest OI on the call side was at the 24,900 and 25,000 strike prices, while on the put side, it was concentrated at the 24,500 strike price.
Rupak De, Senior Technical Analyst at LKP Securities, stated, “The Nifty 50 moved above 24,700 after sustaining above 24,600. The trend is likely to remain strong as long as it stays above the 24,600 – 24,650 range. A decisive fall below 24,600 might trigger a reversal of the current uptrend.” He predicted that the Nifty might move towards 24,840 – 24,860 on the higher end.
VLA Ambala, Co-Founder of Stock Market Today, noted that Nifty 50 formed a green Doji candlestick pattern with a 130-point gain on the daily timeline above its 20-day and 50-day EMAs. She advised caution for short-term investors due to a high PE ratio and suggested looking for opportunities to accumulate high-quality stocks with financial strength.
In terms of Bank Nifty, the index rallied 435 points, or 0.86%, to close at 50,803 on Tuesday, forming a bullish candlestick pattern on the daily timeframe. Ruchit Jain, Lead Research at 5paisa.com, mentioned that the index has formed a support base around 49,650 and advised avoiding contra trades while looking for stock-specific buying opportunities. He highlighted that a sustained move above 51,000 could lead to an upmove towards 52,400 soon.
In conclusion, the Indian stock market is expected to open on a muted note, with the Nifty 50 and Bank Nifty showing signs of potential movements in the near term. Investors are advised 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.