The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Monday amid weak global market cues.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 23,800 level, a discount of nearly 51 points from the Nifty futures’ previous close.
Investors will focus on key stock market triggers, including the next set of Q4 results, US tariff policies, derivatives expiry this week, US-Iran trade talks, Russia-Ukraine ceasefire, trends in gold prices and dollar, and other key events.
The Indian stock market was closed on Friday, April 18, on account of Good Friday.
On Thursday, the domestic market ended with strong gains, with the Nifty 50 closing above 23,800 level.
The Sensex rallied 1,508.91 points, or 1.96%, to close at 78,553.20, while the Nifty 50 settled 414.45 points, or 1.77%, higher at 23,851.65.
Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex Today
Sensex jumped more than 1,500 points to close above the 78,500 level last week, forming a bullish candle on the weekly charts.
“We believe that the short-term market texture is bullish; however, due to temporary overbought conditions, we may see range-bound activity in the near future. For traders, Sensex levels of 77,400 and 76,900 would act as key support zones, while resistance areas for the bulls could be found between 79,000 and 79,600,” said Amol Athawale, VP-technical Research, Kotak Securities.
However, if Sensex dips below 76,900, sentiment could change, prompting traders to consider exiting their long positions.
Nifty 50 Prediction
Nifty 50 witnessed a decisive upside breakout on Thursday and closed the day higher by 414 points.
“A long bull candle was formed on the daily chart, which indicates a faster upside retracement of recent down leg (9 days of decline has been completely retraced in 7 days of upmove). This is a positive indication and indicates a significant trend reversal on the upside. Nifty 50 on the weekly chart formed a long bull candle with a gap up opening. This is a formation of back-to-back long bull candles in the last two weeks,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
The unfilled weekly opening upside gap could be considered as a bullish breakaway gap, which is more often formed at the beginning of sharp up trended movements.
“The next upside levels to be watched are around 24,550 (61.8% retracement taken from September 24 top to April 25 bottom). Immediate support is placed at 23,600 levels,” said Shetti.
Om Mehra, Technical Research Analyst, SAMCO Securities said that the Nifty 50 index displayed strong follow-through buying, forming a robust bullish candle on the daily chart with a large body and a small lower wick, reflecting sustained upward momentum.
“By surpassing the previous resistance of 23,870, Nifty 50 has demonstrated renewed strength and resilience, suggesting that the current bullish undertone may continue in the near term. The index is comfortably trading above all short-term moving averages and is now approaching the 200-day simple moving average, placed around 24,050, which stands as the next key resistance,” said Mehra.
According to Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd, Nifty 50 has formed a strong bullish candle on both the daily and weekly charts, indicating underlying strength.
“Sustaining above the 23,900 level could pave the way for an extended rally towards 24,050, where the 200-Day Simple Moving Average (200-DSMA) is placed. A decisive move above this could open the door for a further upmove towards 24,200. On the downside, immediate support lies at 23,800, followed by 23,500. As long as these levels hold, a ‘buy on dips’ approach remains advisable,” said Yedve.
Bank Nifty Prediction
Bank Nifty index extended its upward momentum, rallying 2.21% to settle at 54,290.20 on Thursday.
“The Bank Nifty index decisively crossed the key trend line resistance zone of 52,800 and formed a big bullish candle on both daily and weekly charts, reflecting underlying strength. The breakout zone of 52,800 now acts as immediate support for Bank Nifty, and as long as this level is maintained, the index could potentially rally towards 54,500–55,000. Hence, traders are advised to adopt a ‘buy on dips’ strategy,” said Hrishikesh Yedve.
Om Mehra said the Bank Nifty continues to exhibit strong bullish undertones and the index is now trading comfortably above all key moving averages and has decisively surpassed its previous resistance of 53,670, which is expected to act as immediate support in the near term.
“The daily RSI remains elevated above the 70 mark, reflecting strong momentum. The positive outlook is further reinforced by the parallel upward movement in the Nifty Private Bank and Nifty PSU Bank indices, suggesting the trend may persist going ahead,” said Mehra.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.