The Indian stock market is poised for a cautious opening on Wednesday, with benchmark indices Sensex and Nifty 50 expected to show muted movement following weak global market signals. The trends from Gift Nifty indicate a flattish start for Indian equities, trading around 25,945 level, representing a slight discount of nearly 4 points from Nifty futures' previous close.
Market Performance and Technical Outlook
On Tuesday, Indian equities closed in negative territory, with the Nifty 50 settling near the 25,900 mark. The Sensex dropped 277.93 points, or 0.33%, to close at 84,673.02, while the Nifty 50 declined by 103.40 points, or 0.40%, ending the session at 25,910.05.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that Sensex formed a bearish candle on daily charts, suggesting potential weakness ahead. However, he maintained that the short-term market outlook remains positive. "We are of the view that the 20-day SMA at around 84,500 and 84,300 would act as key support zones for traders. As long as Sensex is trading above these levels, the positive trend is likely to continue," Chouhan stated.
According to Chouhan, 85,000 represents the immediate resistance zone for bulls. A decisive breakout above this level could propel the index toward 85,300-85,500. Conversely, a break below 84,300 could shift market sentiment downward, potentially dragging Sensex to 84,000-83,800 levels.
Nifty 50 Analysis and Derivative Signals
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, observed that Nifty 50 formed a bearish engulfing candle on the daily chart, indicating a potential pause in the current trend. "A long bear candle has been formed on the daily chart, which indicates the presence of strong hurdle around 26,000-26,100 levels. Hence, there is a possibility of consolidation in the short term before a decisive breakout of the resistance," Shetti explained.
In the derivatives segment, significant call writing at the 26,000 strike and maximum put open interest at 25,900 signal strong overhead supply and firm support at lower levels. Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking, emphasized that "overall sentiment remains cautiously optimistic, but a sustained close above 26,000 will be essential to reinstate bullish momentum and pave the way for further upside in the coming sessions."
Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking, highlighted that Nifty 50 encountered resistance near the crucial 26,000 psychological level. "A decisive breakout above this level could pave the way for an upside move toward 26,200. On the downside, immediate support lies at the 21-DMA around 25,800," Jain noted.
Bank Nifty Prediction and Market Strategy
The Bank Nifty index fell 63.45 points, or 0.11%, to close at 58,899.25 on Tuesday, forming a small red candle on the daily scale that signals profit booking activity.
Hrishikesh Yedve, AVP Technical and Derivative Research at Asit C. Mehta Investment Intermediates, identified immediate support for Bank Nifty near 58,580, with resistance around 59,200 where the trend line hurdle is located. "Traders are advised to buy near support and book profits near the resistance levels mentioned above," Yedve recommended.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, views the 59,100-59,200 zone as a critical hurdle for Bank Nifty. "A decisive and sustainable move above 59,200 could trigger a sharp upside rally, opening the path towards 59,600, and potentially 60,000 in the short term. On the downside, the 58,600-58,500 zone remains an important support area," Shah elaborated.
Market analysts suggest that while short-term consolidation is expected, the overall uptrend remains intact. Investors should monitor key support and resistance levels closely while maintaining a cautiously optimistic outlook toward Indian equities.
