Benchmark indices NSE Nifty 50 and BSE Sensex may open lower amid mixed global cues. The GIFT Nifty futures traded 47 points or 0.24% higher at 19,634 in early morning trade. Asian markets were trading mostly in red – China’s Shanghai Composite Index tumbled 0.66%, Asia Dow plunged 0.77%, South Korea’s KOSPI fell 0.25% and Hong Kong’s Hang Seng tanked 1.88% while Japan’s Nikkei 225 rose 0.11%. The US market ended Monday’s session in green – Dow Jones Industrial Average (DJIA) jumped 1.16%, S&P 500 soared 0.90% and the tech-heavy Nasdaq zoomed 0.61%. On Monday, the NSE Nifty 50 surged 80.30 points or 0.41% to 19,597.30 and Sensex soared 232.23 points or 0.35% to 65,953.48. In sectoral indices, Bank Nifty dipped 42 points or 0.09% to 44,837.50, Nifty PSU Bank tumbled 0.60% while Nifty Auto rose 0.41%, Nifty IT jumped 1.13%, Nifty Pharma soared 1.56% and Nifty Realty gained 0.58%.
NSE Nifty 50 Outlook
Nifty resistance at 19700-19750
“Nifty 50 demonstrated resilience as it predominantly remained strong, reclaiming its position above the 21-day Exponential Moving Average (21EMA) after a brief dip below this critical average. Going forward, the level of 19,500 is expected to serve as immediate crucial support. The market’s upward momentum is likely to persist as long as Nifty maintains its position above this support level. On the upper end, potential resistance can be anticipated around the range of 19,700 to 19,750,” said Rupak De, Senior Technical analyst at LKP Securities.
Nifty to target 19100 in short-term
“The pullback still appears corrective in nature and this is unlikely to sustain at higher levels. It has reached the 61.82% Fibonacci retracement level (19,605) of the fall from 19,795–19,296 which is likely to provide resistance. Also, the hourly momentum indicator has reached the equilibrium line indicating that the pullback has matured and can start a new cycle. Overall, we still shall continue to maintain our negative stance on the Nifty, and we expect levels of 19,100 from a short-term perspective,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Nifty could retest 19450-19425 if it falls below 19500
“For traders, 19,500 would be the key support level, and above the same the Nifty could move up to 19,650 or 20-day SMA (Simple moving average). In case the market appreciates further, the index could rally to 19,725. On the flip side, below 19,500, the uptrend would be vulnerable and the index could retest the level of 19,450-19,425,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd.
Bank Nifty
Bank Nifty expected to trade with negative bias and target 44000
“Bank Nifty traded within the range of the previous trading session and closed in the red. It has thus formed an Inside Bar pattern on the daily charts which makes the extremes of the pattern i.e. 45,1118 and 44,520 crucial levels from a short-term perspective. A breach of these levels on either side shall lead to a move in that direction. Considering the price and momentum setup, we expect the index to trade with a negative bias and target levels of 44,000 from a short-term perspective,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.
Bank Nifty support at 44500; resistance at 45100
“Bank Nifty is currently in a consolidation phase, with a visible support level of 44,500 and a resistance level of 45,100. Traders should consider utilizing opportunities presented within this range to establish positions according to their respective strategies. A clear directional move is anticipated only after a decisive breakout on either side of this range, as this would potentially indicate a stronger and more sustainable trend,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.