The Indian stock market is poised for a lackluster start on Tuesday, influenced by global market trends. Early indicators from the GIFT Nifty suggest a soft opening for the Indian benchmark indices. Currently, GIFT Nifty is trading at approximately 24,083, reflecting a decline of about 52 points compared to the previous close of Nifty futures.
Market Performance on Monday
On Monday, the Indian equity markets showcased impressive gains, marking a fifth consecutive session of upward movement. The Sensex surged by 855.30 points, or 1.09%, concluding at 79,408.50. Meanwhile, the Nifty 50 climbed 273.90 points, or 1.15%, finishing at 24,125.55. This upward momentum is highlighted by a long bullish candle formed on the daily chart, signaling a potential breakout.
- Sensex: Closed at 79,408.50, up 1.09%
- Nifty 50: Closed at 24,125.55, up 1.15%
Outlook for Nifty 50
Analyst Nagaraj Shetti from HDFC Securities notes that the Nifty 50 is showing a decisive upward trend, breaking through a down-sloping trend line and surpassing previous highs around 23,850. He anticipates that the index will soon challenge the next resistance level at 24,200.
- Current Resistance: 24,200
- Next Target: Potential move towards 24,550
Echoing Shetti’s sentiments, Om Mehra, a Technical Research Analyst at SAMCO Securities, emphasizes that the Nifty 50 has reclaimed its 200-day simple moving average (SMA) and is comfortably above all critical moving averages. He suggests that as long as the index stays above 23,950, a strategy of buying on dips is advisable.
Key Support and Resistance Levels
- Support Levels: 23,980, 23,900, and 23,830
- Resistance Levels: 24,250 and 24,370
Bank Nifty Performance
The Bank Nifty also demonstrated robust performance, closing up 1,014.30 points, or 1.87%, at 55,304.50 on Monday. This strong finish formed a bullish candlestick pattern, indicating a continuation of the uptrend. The index has reached new all-time highs and is expected to target the 56,000 mark in the near future.
- Current Bank Nifty Level: 55,304.50
- Recent Breakout: Above a broader range of 54,450 – 48,000
Analyst Insights on Bank Nifty
According to Bajaj Broking Research, the recent breakout has shown that dips in the Bank Nifty should be viewed as buying opportunities. The critical support zone is now expected to be around 54,000 – 53,500.
Final Thoughts
As the market opens today, traders are advised to maintain a cautious yet optimistic stance. The Nifty 50 and Bank Nifty both show signs of strength, and the prevailing trend suggests further bullish potential as long as key support levels hold.
For further insights and updates on stock market trends, be sure to check reliable financial news platforms.
