Indian Stock Market Poised for Strong Opening on Positive Global Cues
The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open significantly higher on Tuesday, driven by positive global market trends. This optimistic outlook is further reinforced by the performance of Gift Nifty, which is trading at a premium, indicating robust investor sentiment for the Indian benchmark index.
Market Performance and Technical Indicators
On Monday, the Indian stock market closed with notable gains, with the Nifty 50 surpassing the 25,850 level. The Sensex surged by 485.35 points, or 0.58%, to close at 84,065.75, while the Nifty 50 increased by 173.60 points, or 0.68%, settling at 25,867.30. This upward movement reflects a recovery in key sectors such as financials and industrials.
Market analysts highlight that the Sensex has crossed the psychological 84,000 mark for the first time in several sessions, supported by healthy market breadth and favor towards mid-cap stocks. Immediate support for Sensex is identified in the 83,500 – 83,700 zone, with resistance at 84,400 – 84,500. A sustained break above this resistance could signal a trend reversal towards previous all-time highs.
Nifty 50 Analysis and Predictions
In the derivatives segment, significant put writing at the 25,800 strike and strong call writing at the 26,000 strike suggest a narrow near-term trading range for Nifty 50. Analysts advise a buy-on-dips strategy near key support levels, awaiting a decisive breakout above resistance for fresh positions.
Nifty 50 formed a Doji candle on the daily chart, indicating indecision among participants. However, the formation of bullish runaway gaps and sustained movement above 25,800 levels are positive signs. The underlying trend remains positive, with next upside targets at 26,000 and 26,350. Immediate support is placed at 25,700, with the 50-DMA around 25,795 acting as a key floor.
Momentum indicators like MACD and RSI are supportive, with potential for a rally towards 26,000 and beyond if resistance is breached. Immediate resistance is visible in the 25,950 – 26,000 range, with a decisive close above 26,000 needed to trigger further gains.
Bank Nifty Outlook and Technical Setup
Bank Nifty ended 548.80 points, or 0.91%, higher at 60,669.35 on Monday, holding above all key moving averages with positive crossovers. Immediate resistance is placed in the 60,800 – 60,900 zone, with potential upside towards 61,300 and 61,600 if sustained above. Support lies in the 60,400–60,300 zone, with stronger bases near 59,600.
Technical analysis shows the index rebounding from recent lows, retracing toward Fibonacci levels, with RSI and DMI indicators supporting a bullish setup. A buy-on-dips approach is recommended as long as key support levels are protected, with the index positioned near record highs.
Disclaimer: The views and recommendations provided are from individual analysts or broking companies and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
