Indian Stock Market Set for Bullish Opening
The Indian stock market is gearing up for a positive start on Wednesday, with benchmark indices Sensex and Nifty 50 expected to open higher following encouraging global market signals. The Gift Nifty trends are pointing toward a gap-up opening for the main Indian index, trading at approximately 25,962 levels - showing a significant premium of about 150 points compared to the previous closing of Nifty futures.
Previous Session Performance and Technical Analysis
On Tuesday, the Indian equity markets continued their upward movement for the second straight session. The Sensex climbed 335.97 points, representing a 0.40% increase, to settle at 83,871.32. Meanwhile, the Nifty 50 gained 120.60 points, rising 0.47% to close at 25,694.95.
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the Sensex has established a higher bottom on intraday charts and successfully closed above the 20-day Simple Moving Average, indicating positive momentum. Chouhan emphasized that 83,500 and 83,300 levels will serve as crucial support zones for Sensex, while 84,000 to 84,300 range could present immediate resistance for bullish traders.
Nifty 50 and Bank Nifty Outlook
Technical analysts are observing promising patterns in Nifty 50's performance. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted that Nifty 50 formed a bullish candle with a long lower shadow on the daily chart, signaling strong buying interest at lower price levels. Shetti projects upside targets around 26,000-26,100 within the next week, with immediate support positioned at 25,500.
In the derivatives segment, Nifty open interest data reveals significant call writing at the 25,800 strike and maximum put OI concentration at 25,600, indicating strong resistance near the 25,800 level. Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking, maintains that sentiment remains cautiously optimistic, with a sustained close above 25,800 expected to strengthen bullish momentum.
The banking sector index, Bank Nifty, advanced 200.60 points (0.35%) to finish at 58,138.15 on Tuesday. Hrishikesh Yedve, AVP Technical and Derivative Research at Asit C. Mehta Investment Intermediates Ltd., highlighted that the index formed a bullish candle with a long lower shadow, demonstrating robust demand at lower levels. Key resistance levels for Bank Nifty are identified at 58,580 and 59,000, while support rests near 57,590.
Expert Recommendations and Market Strategy
Nilesh Jain from Centrum Broking Ltd. observed that the Nifty 50 index surpassed its short-term resistance at the 21-day moving average near 25,660, closing just below the 25,700 mark. Jain recommends a buy-on-dips strategy in the current volatile market environment, with support base elevated to around 25,450.
Dr. Praveen Dwarakanath from Hedged.in reinforced the bullish sentiment, noting that Nifty 50's close above the 20-day moving average indicates strength in the index. Momentum indicators have turned upward, further supporting the positive outlook, with ADX DI+ line sloping upward and ADX DI- line sloping downward, confirming bullish momentum.
Sudeep Shah from SBI Securities emphasized that Bank Nifty's zone of 58,300-58,400 will act as a crucial hurdle. A sustained move above 58,400 could trigger a sharp upward rally toward the 59,000 level, while the 57,700-57,600 support zone should provide cushion against short-term weakness.
