Indian Stock Market Anticipates Bullish Opening on Wednesday
The Indian stock market is gearing up for a positive start on Wednesday, with benchmark indices Sensex and Nifty 50 expected to open higher despite receiving mixed signals from global markets. This optimistic outlook is reinforced by trends observed in Gift Nifty, which was trading around the 26,058 level, representing a premium of approximately 72 points compared to the previous close of Nifty futures.
Market Performance and Technical Analysis
On Tuesday, the Indian equity markets continued their upward trajectory for the third consecutive session. The benchmark Nifty 50 successfully closed above the significant 25,900 threshold, while the Sensex gained 208.17 points, or 0.25%, to settle at 84,273.92. The Nifty 50 advanced by 67.85 points, or 0.26%, concluding at 25,935.15.
Sensex Technical Perspective: The formation of a Doji candle pattern on the daily charts for Sensex indicates a state of indecisiveness between bullish and bearish forces. Shrikant Chouhan, Head of Equity Research at Kotak Securities, maintains that the short-term market outlook remains positive. However, he cautions that a quick intraday correction could occur if Sensex falls below the 84,100 level. Should this happen, the index might retest the 50-day Simple Moving Average (SMA) around 83,700 to 83,500. On the upside, 84,500 represents the immediate resistance zone. Chouhan believes that a decisive breakout above 84,500 could propel Sensex toward the 84,800 to 85,000 range.
Nifty 50 Market Dynamics: The Nifty 50 also displayed a Doji-like candle on its daily chart, reflecting uncertainty among traders. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted the formation of a high wave type candle pattern, suggesting minor volatility at current highs. Despite this, the underlying trend remains positive within a range-bound movement. Shetti identifies 26,000 as a crucial resistance level; a breakout above this could drive the index toward 26,350 in the near term, with immediate support positioned at 25,800.
Nilesh Jain, VP-Head of Technical and Derivative Research at Centrum Finverse Ltd., emphasized that the 50-day moving average around 25,790 serves as critical support. As long as Nifty 50 maintains above this level, gradual upward momentum toward 26,000 is expected. A decisive move beyond 26,000 could trigger short covering and push the index to 26,200. Additionally, India VIX dropped sharply by 3% to below 12, and further declines in volatility would bolster bullish sentiment.
Derivatives and Bank Nifty Outlook
In the derivatives segment, Hitesh Tailor, Research Analyst at Choice Equity Broking, highlighted significant put writing at the 25,900 strike and heavy call writing at the 26,000 strike, indicating a narrow near-term trading range. The overall market setup favors a buy-on-dips strategy near key support levels, though traders may await a clear breakout above resistance zones before taking new directional positions.
Bank Nifty Analysis: The Bank Nifty index experienced a minor decline of 42.95 points, or 0.07%, closing at 60,626.40 on Tuesday. It formed a small body candle on the daily chart, suggesting a lack of commitment from both bulls and bears, yet it remains above all key moving averages. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, identified 60,900 to 61,000 as an immediate hurdle. A sustainable move above 61,000 could lead to an upside rally toward 61,500 and potentially 62,000 in the short term. On the downside, 60,100 to 60,000 serves as crucial support.
Om Mehra, Technical Research Analyst at SAMCO Securities, observed that Bank Nifty is comfortably positioned above the Ichimoku cloud, confirming trend stability. The index remains above the Tenkan-sen and Kijun-sen lines, indicating consolidation within an ongoing uptrend rather than a reversal. With the RSI near 58 and MACD in positive territory, Mehra expects Bank Nifty to maintain its bullish stance as long as it holds above the 59,900 level. The upper Bollinger Band around 60,800 acts as short-term resistance, with the main hurdle at 61,000.
Disclaimer: The views and recommendations expressed are those of individual analysts or broking firms and do not represent official advice. Investors are advised to consult certified experts before making any investment decisions.
