Stock Market Today, Nifty, Bank Nifty: Benchmark indices NSE Nifty 50 and BSE Sensex may trade higher today amid positive global cues. The Nifty futures on Singapore Exchanges (SGX) were trading 43 points or 0.23% higher at 18,802.5 in the early morning trade. Asian markets were trading mixed – Hong Kong’s Hang Seng rose 0.62%, China’s Shanghai Composite Index gained 0.41%, South Korea’s KOSPI climbed 0.2% while Japan’s Nikkei 225 fell 0.74% and Asia Dow dipped 0.1%. The US market ended the overnight session broadly in green – Dow Jones Industrial Average (DJIA) jumped 1.26%, S&P 500 surged 1.22% and the tech-heavy Nasdaq soared 1.15%. On Thursday, the NSE Nifty 50 sank 67.80 points or 0.36% to 18,688.10 and BSE Sensex tumbled 310.88 points or 0.49% to 62,917.63. In sectoral indices, Bank Nifty plunged 544.40 points or 1.24% to 43,443.60, Nifty PSU Bank tanked 1.99% while Nifty Pharma jumped 1.42%.
NSE Nifty 50 Outlook
Nifty support at 18635-18555; resistance at 18770-18800
Nifty may bounce back due to positive global cues but it needs to cross 18770 for any challenge to yesterday’s bearish setup. Trail stop loss to 18555 for Longs. First support at 18635 and then 18555 while resistance at 18770 and then 18800, according to Rahul Sharma, JM Financial.
Nifty OI Data – Target: 18850+
“Nifty weekly expiry option chain witnesses 18700 straddles playing very aggressively, with CE writers adding over 1.5 lak OI and PE writers with 1.43 lakh OI contracts, also to observe very rigorous fresh additions of nearly a lakh contracts on each side. Though maximum exposure for CE writers stays at the 18800 strike – again with over 1.59 lakh OI contracts and fresh additions of 1.26 lakh contracts. PCR_OI at 18700 is just below 1, which is the key factor to watch now to understand the direction going ahead. Fresh Buying only if 18700 zones are held, for targets of 18850+, otherwise a sell till 18450 cannot be ruled out,” said Shilpa Rout – Derivatives Lead Analyst, Prabhudas Lilladher Pvt Ltd.
Weak sentiment likely to continue till Nifty trades below 18765
“A double top formation on intraday charts and a bearish candle on daily charts are indicating temporary weakness in the markets. As long as the Nifty is trading below 18765, the weak sentiment is likely to continue. Below the same, the index could slip till 18600-18550. However, a fresh uptrend could be seen only after the dismissal of 18765 and could move up to 18825-18875,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd.
Nifty 18750-18800 zone remains the critical hurdle
“The immediate support for Nifty could be seen around 18600, followed by the sacrosanct support of 18500 in the near period. At the same time, any further sell-off could dampen the near-term bullish sentiments. On the higher end, the 18750-18800 zone remains the critical hurdle and seems a daunting task for the bulls to breach the same in the comparable period,” said Osho Krishan, Sr. Analyst, Technical & Derivative Research, Angel One Ltd.
Nifty short-term outlook changed to sideways from positive
“Price and momentum indicators are suggesting weakness in the near term and thus we change our short-term outlook on Nifty to sideways from positive. The range of consolidation is likely to be 18800–18500. The 20-day moving average which has been holding out during this rally is placed at 18532 and so only a decisive break below that shall reverse the trend. In terms of levels, 18780–18800 shall act as an immediate hurdle zone while 18530–18500 is a crucial support zone to watch out for,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
Bank Nifty Outlook
Bank Nifty support at 43333-43103; resistance at 43987-44411
Bank Nifty bias negative below 20 DEMA of 43855. First support at 43333 and then 43103 while resistance at 43987 and then 44411, according to Rahul Sharma, JM Financial.
Bank Nifty OI data – Targets: 44000/44300/44550/45000
“Bank Nifty weekly expiry option chain data reflects on 44000CE adding overall more than 1.4 lakh OI contracts, followed by 47000CE – more than 0.77 lakh OI contracts. Various other immediate strikes added close to 0.7 lakh contracts as well, with PE writers active at 43500PE – 0.56 lakh OI contracts. PCR_OI at 43300 is almost 3 and 43400 is just above 1, which hints at support coming at 43300/43250 zones for the Index on an immediate basis. If Bank Nifty holds 43000, a good buy for targets of 44000/44300/44550/45000 zones with a stop loss at 42800,” said Shilpa Rout – Derivatives Lead Analyst, Prabhudas Lilladher Pvt Ltd.
Bank Nifty may fall to 43000 if it sustains below 43500
“Bank Nifty index has experienced a breakdown on the daily chart, accompanied by significant trading volumes. This suggests the increased selling pressure in the index. The index has breached the support level at 43700, which was expected to provide a level of price support. This breakdown below support indicates a potentially bearish signal for the Bank Nifty. If the index sustains below the level of 43500, it is anticipated to face further selling pressure, potentially driving the index towards the next support level at 43000,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.
Bank Nifty may witness more weakness in near future
“Considering yesterday’s bearish momentum, we may observe more weakness in the near future, with the next support level around the 50-day simple moving average (50sma) at around 43150, followed by the swing low of 42600 recorded in May. On the upside, the previous support level of 43700-43800 will now act as immediate resistance. Traders should take note that this recent weakness is merely a price correction, and the overall trend remains positive. Any further dips should be seen as buying opportunities,” said Rajesh Bhosale, Technical Analyst at Angel One Ltd.
Bank Nifty may fall to 42620-42180 if it trades below 43300
“After 12 days of the sideway movement, Bank Nifty witnessed a breakdown of consolidation, indicating that selling pressure can continue in the Index for the coming days. The Momentum Indicator RSI (14) on a Daily Time Frame has given a breakout, from a higher range, supporting the price move. On the higher end, immediate resistance is placed at 44350. Now it has to continue to hold below 43300 zones to witness a downside move towards 42620 and 42180 zones, while resistance exists at 43700 and 43900 levels on the upside,” said Mahesh Prakot Research Analyst at Bonanza Portfolio Ltd.