The Indian stock market is poised for a positive opening on Wednesday, with benchmark indices Sensex and Nifty 50 expected to gain ground following upbeat global market trends. The Gift Nifty, trading around 26,159 level with a premium of nearly 104 points from Nifty futures' previous close, indicates strong momentum for the Indian market.
Market Performance and Technical Analysis
On Tuesday, the Indian stock market extended losses for the third consecutive session, with the benchmark Nifty 50 closing below the 25,900 level. The Sensex fell 313.70 points, or 0.37%, to settle at 84,587.01, while the Nifty 50 concluded the November F&O series at 25,884.80, down 74.70 points, or 0.29%.
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, Sensex formed a bearish candle on daily charts and is maintaining a lower top formation on intraday charts, signaling largely negative sentiment. The 85,000-85,200 zone remains a critical resistance area for traders, with weak sentiment likely to persist as long as Sensex trades below this level.
Chouhan identified 84,300 as immediate support for bulls, warning that a break below this level could push the index toward 84,000. However, he noted that a successful breakout above 85,200 could drive Sensex toward 85,500-85,700 levels.
Nifty 50 Outlook and Derivative Data
Nifty 50 created its third consecutive bearish candle with lower high and lower low formations, indicating extended profit booking as the index faces selling pressure around previous all-time highs. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, described this pattern as a downtrend continuation signal for the short term.
Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking, highlighted that Nifty derivatives data shows strong call writing at 26,000 strike, while maximum put open interest at 25,800 indicates firm demand at lower levels. She emphasized that sustained closing above the 26,000 mark is essential to revive bullish momentum and unlock further upside potential.
Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking, stated that a clear move above 26,000 is now crucial to spark short covering and pave the way toward 26,200. He noted the Nifty 50 index is precariously positioned near its 21-DMA at 25,850, with a break below this support potentially accelerating the downside toward 25,700.
Bank Nifty Prediction and Trading Strategy
The Bank Nifty index declined 15.05 points, or 0.03%, to close at 58,820.30 on Tuesday, forming a red candle with long upper shadows that reflects selling pressure at higher levels. Hrishikesh Yedve, AVP Technical and Derivative Research at Asit C. Mehta Investment Intermediates, identified immediate support near 58,580, with sustained movement below this level potentially triggering fresh weakness toward 58,000-57,800.
Bajaj Broking Research observed that the Bank Nifty index formed a small bearish candle contained within the previous session's price range, signaling consolidation amid stock-specific action during the monthly expiry session. The brokerage firm expects the index to maintain positive momentum above the 58,200-58,500 breakout area and move toward 59,800 in coming weeks.
Analysts recommend using the current market breather to accumulate quality banking stocks in a staggered manner, with the broader trend remaining bullish as long as Nifty 50 holds above its 50-DMA near 25,490 level.
