The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Tuesday, tracking mixed global market cues.
The trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading around 23,461 level, a discount of nearly 176 points from the Nifty futures’ previous close.
The Indian stock market was shut on Monday, March 31, in observance of Eid-ul-Fitr.
On Friday, the domestic equity market ended lower amid profit booking, with the Nifty 50 holding the 23,500 level.
The Sensex declined 191.51 points, or 0.25%, to close at 77,414.92, while the Nifty 50 settled 72.60 points, or 0.31%, lower at 23,519.35.
Nifty OI Data
Nifty Open Interest (OI) data suggests resistance at 23,600 and 24,000, while 23,300 acts as strong support. A breakout above 23,800 could accelerate further gains, and traders should closely watch these levels to confirm the next trend direction.
Nifty 50 Prediction
On March 28, amid range fluctuation, the Nifty 50 fell into weakness and ended the day down 72 points.
On the daily chart, a respectable negative candle appeared, indicating that bulls are unable to sustain a follow-through upmove. Range-bound action is likely to develop within a high-low range of approximately 23,650 to 23,400 levels, according to the current chart pattern.On the weekly chart, the Nifty 50 created a little candle with a long upper shadow. Technically, this market movement suggests that a doji-type candle pattern—a gravestone doji, not a traditional one—is forming. For the near future, this market activity points to additional consolidation, according to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He asserts that the Nifty 50’s short-term upward trend is still intact and that the underlying upward tendency has not yet been harmed by the decline from the highs.
“The 200-day Exponential Moving Average (EMA) is the immediate support, and the overhead resistance should be monitored at 23,650 levels and the next 23,850 for this week,” Shetti stated.
Technical analyst Om Mehra of SAMCO Securities pointed out that the Nifty 50 index had a solid monthly return of 6.30% and remained resilient on a weekly basis, gaining 0.72%.
The Nifty’s bullish momentum is reinforced by a higher high and higher low pattern on the daily chart. The daily RSI stays stable above the 60 level, suggesting continued strength, and the index is securely positioned above the 20, 50, and 100 EMAs. The 38.2% retracement level at 23,280 provides a more sizable cushion, while the 23.6% Fibonacci retracement around 23,500 provides moderate support. Before making its next big move, the Nifty might consolidate for a while, Mehra stated.
Asit C. Mehta Investment Interrmediates Ltd.’s AVP Technical and Derivatives Research, Hrishikesh Yedve, claims that the Nifty 50 created a red candle on the daily chart and respected the 100-Days EMA support around 23,400. On the weekly scale, though, the indicator displayed uncertainty by forming a doji candle.
A strong rise over 23,810 might continue the advance towards 24,000–24,080, where the 200-Day Simple Moving Average (200-DSMA) is located. The Nifty 50 index is still seeing resistance in the 23,800–23,810 range. Conversely, maintaining below 23,400 can cause additional weakness in the direction of 23,200–23,000 levels. Yedve advised traders to keep an eye on these levels for possible trading opportunities.
On the weekly chart, the Nifty 50 displayed a tombstone doji candlestick pattern, which denotes a bearish emotion if it closes below 23,390, according to VLA Ambala, co-founder of Stock Market Today.
The 23,350–23,400 range can be regarded as a significant for market movements and trading strategy in the following week, according the market research. In intraday trading, the Nifty may anticipate resistance around 23,600 and 23,670 and support between 23,415 and 23,300. Any large gap opening, meanwhile, may have a different impact on market movements on a long weekend, according to Ambala.
Bank Nifty Prediction
The Bank Nifty index formed a minor red candle at 51,564.85 on Friday, ending 11.00 points, or 0.02%, lower. On the weekly scale, it produced a green candle, indicating underlying strength.
The upbeat outlook is further supported by the Bank Nifty index’s continued holding above the 200-DSMA. Key resistance levels on the upside are 51,850 and 52,000; a sustained rise over 52,000 may lead to additional upside. Hrishikesh Yedve advised traders to stick to a “buy on dips” approach for the Bank Nifty as long as the index remains above the 200-DSMA support of 51,000.
Since the Bank Nifty index is still above all significant moving averages, Om Mehra thinks that the overall trend is still firmly optimistic.
Following a robust rising trend, Nifty Bank seems ready for a sound correction that might create a firm support foundation before to its subsequent upward phase. The resistance is at 52,100, and the support is still at 51,000. For the next session, buying on dips is still a good tactic, Mehra stated.
The Bank Nifty index created a high wave candle, indicating consolidation amid stock-specific movement, according to a note from Bajaj Broking Research.
“We anticipate that the index will continue to consolidate over the next four sessions in the wide range of 52,000 to 50,500, laying the groundwork for the subsequent upward leg and resolving the overbought situation that emerged in the daily stochastic,” stated Bajaj Broking Research.
Since the index is expected to hold above the recent major breakout area of 50,500 and progressively move towards 53,000 levels in the upcoming weeks, which is the measuring implication of the last 10-week range breakout, the brokerage firm thinks the current breather should be used to accumulate quality banking stocks.
