The Indian stock market is poised for a negative opening on Friday, mirroring sharp declines in global markets and facing potential volatility ahead of the Bihar election results. Market sentiment remains cautious as investors monitor key technical levels.
Global Cues and Market Sentiment
The Gift Nifty was trading around 25,844 level, indicating a discount of nearly 110 points from the Nifty futures' previous close, signaling weak opening sentiment. This comes after the Indian market ended flat on Thursday with the Sensex gaining just 12.16 points to close at 84,478.67 while the Nifty 50 settled 3.35 points higher at 25,879.15.
Sensex Technical Analysis and Prediction
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the 20-day Simple Moving Average at 84,200 acts as crucial support for the Sensex. As long as the index trades above this level, the bullish momentum is likely to continue. The immediate resistance zone stands at 85,000, with a successful breakout potentially pushing the index to 85,300.
Chouhan added that if the Sensex falls below the 84,200 support, it could retest levels of 84,000 to 83,700, indicating potential short-term pressure on the market.
Nifty 50 Outlook and Derivative Data
The Nifty 50 formed a doji-like candle on the daily chart, reflecting indecision among traders. Nagaraj Shetti of HDFC Securities noted this pattern signals ongoing high volatility in the market.
In the derivatives segment, maximum Call Open Interest was seen at 26,000 strike while maximum Put OI stood at 25,800 and 25,700, suggesting traders expect the Nifty to remain range-bound between 25,700 and 26,000.
Amruta Shinde of Choice Equity Broking stated that a decisive close above 26,000 could trigger fresh upside momentum, while a fall below 25,700 may lead to short-term profit booking. Support levels are identified at 25,750-25,700, with resistance at 26,000.
Bank Nifty Performance and Levels
The Bank Nifty index gained 107.30 points to close at 58,381.95 on Thursday, forming a bullish candle with upper shadow indicating profit booking. The index had hit a record high of 58,615.95 during the session.
Hrishikesh Yedve of Asit C. Mehta Investment Intermediates highlighted that major support for Bank Nifty is placed near 57,590 levels while resistance is seen at 58,615. A decisive breakout above 58,615 will determine the next directional move.
Ponmudi R of Enrich Money noted that Bank Nifty continues to display strong momentum with support at 58,000 and resistance at 58,500-58,600. A breakout above this range could open doors for further gains toward 59,000.
Market experts advise investors to maintain caution and consult certified experts before making any investment decisions in the current volatile environment.
