The SGX Nifty recorded a gain of 0.27% during Tuesday’s early trading session, with a value of 18,748 indicating a positive opening for the domestic indices NSE Nifty 50 and BSE Sensex. On Monday, NSE Nifty 50 and BSE Sensex ended the trading session with gains, snapping a two-day losing streak. Nifty 50 closed at 18,601, up by 38 points while Sensex recorded a gain of 99 points, at 62,725.
The S&P 500 and Nasdaq hit their highest closing levels since April 2022, as investors await the FOMC policy verdict and US inflation data. The S&P 500 rose by 0.93%, the tech-heavy Nasdaq Composite soared 1.53% while the Dow Jones Industrial Average climbed 0.56%.
NSE Nifty 50 Outlook
Nifty 50 charts indicating indecisiveness
“Nifty has formed a Doji candle on the daily chart which indicates indecisiveness in the markets. Also we can witness an inside candle In Index where the cross of Friday’s high/low will decide the big move on the index. For investors the market is still buying on dips with a strict SL of 18,500 and if Nifty closes below the mentioned level we can witness some more pressure on the lower side,” said Deven Mehata, Equity Research Analyst, Choice Broking.
Nifty trading sideways
“Technically, the NSE Nifty 50 hovered between 18,560 to 18,630, and the narrow range activity clearly indicates indecisiveness between the bulls and bears. For traders, 18,550 would be the immediate support level, above which the index could move up till 18,650-18,700. On the other hand, a fresh sell-off is possible only after the dismissal of 18,550. Below the same, the index could slip till 18,500-18,450,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.
Nifty resistance seen at 18,800
“For the Nifty, initial support is expected to be found at the level of 18,600, where significant Put writing has been observed. This indicates that there is buying interest at this level, potentially providing a floor for the index. On the other hand, resistance levels are seen at 18,650 and 18,800, indicating potential barriers for the Nifty’s upward movement,” said Rupak De, Senior Technical, LKP Securities.
Nifty 50 could see consolidation in near-term
“The hourly momentum indicator has triggered a fresh positive crossover, however, the daily momentum indicator of the NSE Nifty 50 has a negative crossover and thus provides divergent signals. Both price and momentum indicators are suggesting that there could be a consolidation in the near term and the overall uptrend is still intact. In terms of levels, 18,530 – 18,500 shall act as a crucial support zone while 18,778 – 18,800 shall act as an immediate hurdle zone,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Bank Nifty Outlook
Bank Nifty falls for third consecutive day
“Bank Nifty index has closed in the negative for the third consecutive day. It is trading around the lower end of the rising channel and also the 20-day moving average (43,980). We expect the Bank Nifty to hold on to this support and resume its upmove. The short-term target is placed at 44,500,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Bank Nifty trading trading range-bound
“The Bank Nifty index has been trading in a range-bound manner, indicating a lack of clear direction in the market. The market seems uncertain and cautious as it awaits key events such as the US Federal Reserve meeting. Heavy open interest in the 44,000 Call Option (CE) and Put Strike suggests a significant level of trading activity and a fight between the bears and the bulls. This indicates that market participants have conflicting opinions and expectations regarding the future direction of the index,” said Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities.