The Indian stock market is gearing up for a promising start on Wednesday, with benchmark indices Sensex and Nifty 50 expected to open higher. This positive sentiment is primarily driven by optimism surrounding the recently announced India-EU trade deal, coupled with mixed cues from global markets. The trends on Gift Nifty further reinforce this outlook, indicating a favorable opening for the Indian benchmark index.
Market Performance and Technical Outlook
On Tuesday, the Indian stock market closed on a strong note following the India-EU trade deal announcement. The benchmark Nifty 50 successfully closed above the 25,150 level, marking a significant milestone. The Sensex gained 319.78 points, or 0.39%, to settle at 81,857.48, while the Nifty 50 rose by 126.75 points, or 0.51%, closing at 25,175.40.
Nifty 50 Prediction: Signs of Bullish Reversal
Nifty 50 has formed a double bottom pattern near the 25,900 support on the daily chart, reclaiming both the 200-day moving average (200DMA) and the 200-day exponential moving average (200EMA). This development suggests early indications of a potential bullish reversal. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted that a long bull candle with a lower shadow appeared on the daily chart, forming a bullish 'Piercing line' candle pattern. This pattern typically signals a short-term bottom reversal in the market.
According to Shetti, the underlying trend of Nifty 50 appears to have reversed upward from near the 24,900 support level. The next overhead resistance to monitor is around 25,500 in the coming sessions, with immediate support placed at 25,150.
Nilesh Jain, Head of Technical and Derivatives Research Analyst at Centrum Broking Ltd., highlighted that Nifty 50 found support near the 25,000 mark and reclaimed its long-term 200-DMA on a closing basis. However, he cautioned that the index is not entirely out of the woods yet. A decisive move above 25,400 is crucial to negate the prevailing bearish setup. Jain also pointed out that the Relative Strength Index (RSI) has slipped into an extremely oversold zone, indicating the possibility of a short-term pullback. Meanwhile, INDIAVIX cooled off sharply from intraday highs of 16 but remains in an uptrend, which continues to be a concern. Jain expects Nifty 50 to oscillate within the broader range of 25,000 to 25,400 levels.
Bank Nifty Prediction: Strong Buying Interest
The Bank Nifty index surged 732.35 points, or 1.25%, to close at 59,205.45 on Tuesday. This movement formed a long bullish candlestick on the daily chart, reflecting strong buying interest. Ponmudi R, CEO of Enrich Money, observed that Bank Nifty maintains a constructive structure by holding firmly above its rising channel support near 58,150. The index staged a sharp rebound from this base, forming a classic bullish flag pattern—a strong rally followed by healthy consolidation within the 58,500–58,750 range. This price behavior indicates consolidation without distribution, as sellers failed to breach key support levels. The session's close near the 59,200–59,350 zone clearly signals sustained buyer dominance.
According to Ponmudi, a decisive breakout above 59,500 would confirm bullish continuation and open scope for further upside in the near term. The 58,150 area remains the pivotal support preserving the positive structure.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, emphasized that the immediate resistance for Bank Nifty is seen in the 59,350–59,400 zone, which coincides with the 20-day EMA zone, making it a crucial supply area to watch. A sustained move above this zone could open the door for a pullback rally on the upside towards 59,700, followed by 60,000 in the near term. On the downside, the 58,700–58,600 zone is likely to act as strong support.
Disclaimer: The views and recommendations provided above are those of individual analysts or broking companies and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
