Market Opening Signals Negative Trend
The Indian stock market is poised for a cautious start on Tuesday, with benchmark indices Sensex and Nifty 50 expected to open lower following weak global market signals. The Gift Nifty, trading around 26,008 level, showed a discount of nearly 52 points from the Nifty futures' previous close, indicating potential downward pressure at opening bell.
This anticipated decline comes despite Monday's positive performance where both major indices closed in green territory. The Nifty 50 successfully reclaimed the crucial 26,000-mark, while Sensex demonstrated solid gains during the trading session.
Monday's Market Performance Recap
On Monday, Indian equity markets displayed resilience with both key indices posting significant gains. The Sensex climbed 388.17 points, representing a 0.46% increase, to settle at 84,950.95. Simultaneously, the Nifty 50 advanced by 103.40 points, gaining 0.40%, to close at 26,013.45.
The market sentiment remained largely positive with technical indicators suggesting continued upward momentum. Market analysts observed bullish patterns forming across major indices, though caution prevailed due to global market uncertainties.
Expert Technical Analysis and Predictions
Sensex Technical Outlook
Shrikant Chouhan, Head of Equity Research at Kotak Securities, highlighted that Sensex formed a bullish candle on daily charts and maintains an uptrend continuation formation on intraday charts. The 84,500 level is identified as a crucial support zone for day traders. Chouhan emphasized that above this support, Sensex could potentially rally to 85,200, with further upside possible toward 85,500-85,700 levels.
Market Analyst Mayank Jain from Share.Market reinforced this view, noting technical support for Sensex between 84,500-84,400. He suggested that a sustained move above 85,100-85,200 could trigger fresh bullish momentum in the index.
Nifty 50 Projections
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, observed that Nifty 50 formed a reasonable bull candle with minor lower shadow on the daily chart. This pattern indicates the market is positioned to break above the 26,100 resistance level. Shetti noted that the bullish chart pattern of higher tops and bottoms continues, suggesting potential for further gains.
According to Shetti's analysis, a decisive upward move could propel Nifty 50 toward 26,300-26,400 levels in the short term, with immediate support positioned at 25,900.
Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking, maintains that the overall structure remains strong, indicating potential for fresh record highs soon. He identified immediate resistance at 26,100, followed by 26,280, while noting that support levels are gradually moving higher.
Bank Nifty Performance and Forecast
The banking sector showed notable strength on Monday, with Bank Nifty index surging 445.15 points, or 0.76%, to close at 58,962.70. The formation of a bullish candle on the daily chart signaled sustained bullish momentum in banking stocks.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, stated that Bank Nifty has delivered a decisive breakout from its consolidation phase. This technical development suggests the index is positioned to extend its upward trajectory, potentially testing 59,500 initially, followed by the 59,900 level.
Hrishikesh Yedve, AVP Technical and Derivative Research at Asit C. Mehta Investment Intermediates Ltd., identified immediate support for Bank Nifty near 58,580, with resistance around 59,200. He advised traders to consider buying near support levels and booking profits near resistance zones.
Derivative Data and Market Sentiment
In the derivatives segment, Nifty open interest data revealed significant call writing at the 26,050 and 26,200 strikes, while maximum put OI was observed at 25,900. This options data suggests strong support at lower levels, according to Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking.
Shinde emphasized that overall sentiment remains cautiously optimistic, with a sustained close above 26,050 being crucial for strengthening bullish momentum and enabling further upside movement in the market.
Market participants are advised to monitor global cues and domestic developments closely, as these factors will likely influence trading direction throughout the session. The broader trend remains bullish, with any significant pullbacks potentially offering buying opportunities for investors.
