The Indian stock market is poised for a steady opening on Tuesday, with the benchmark indices, Sensex and Nifty 50, showing signs of stability amid mixed signals from global markets. The latest trends from Gift Nifty suggest a slight uptick, trading around the 24,478 mark, indicating a premium of approximately 26 points from the previous Nifty futures close. After a robust performance on Monday, where Nifty 50 surged past the 24,300 threshold, investors are keenly watching for further developments.
Market Performance Overview
On Monday, the Indian equity markets showcased impressive gains, with Sensex climbing 1,005.84 points (1.27%) to finish at 80,218.37. Meanwhile, Nifty 50 ended the day up by 289.15 points (1.20%), concluding at 24,328.50.
- Sensex: +1,005.84 points
- Nifty 50: +289.15 points
- Current Levels: Sensex at 80,218.37, Nifty 50 at 24,328.50
Sensex Projections
Following a substantial rally, Sensex formed a long bullish candle, signaling potential for continued upward momentum. According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the short-term outlook remains bullish. He suggests that day traders adopt a strategy of buying on dips and selling on rallies.
Key levels to watch:
- Support Zones: 79,800 and 79,500
- Resistance Areas: 80,500 – 80,700
Chouhan warns that a drop below 79,500 could jeopardize the current uptrend.
Insights on Nifty Options
The options data for Nifty reflects a shift in market sentiment from cautiousness to optimism. Dhupesh Dhameja, a Derivatives Research Analyst at SAMCO Securities, notes that aggressive put writing has outpaced call writing—a positive indicator for bullish bets.
Key observations include:
- Resistance Level: 24,500 strike with significant open interest (1.06 crore contracts)
- Support Level: 24,000 strike with robust put writing (1.24 crore contracts)
The Put-Call Ratio (PCR) has surged to 1.17, up from 0.70, indicating a clear bullish tilt in market sentiment.
Nifty 50 Analysis
On April 28, Nifty 50 showed a strong rebound, closing nearly 290 points higher. Nagaraj Shetti, a Senior Technical Research Analyst at HDFC Securities, indicates that the index is positioned at the verge of a breakout, with immediate resistance at 24,360.
Important levels to track:
- Immediate Support: 24,050
- Next Resistance: 24,600 – 24,800
Further, Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta, emphasizes the importance of the 200-Day Simple Moving Average at 24,050, suggesting that maintaining above this level could sustain positive momentum.
Bank Nifty Outlook
Bank Nifty also had a notable day, rising 768.75 points (1.41%) to close at 55,432.80, forming a bullish engulfing candle that hints at a potential continuation of its upward trend. Analysts suggest that a sustained move above 55,577 could lead to further gains toward 56,200 and 56,800 levels.
Key points to consider:
- Immediate Support: 54,000 – 55,600 range
- Resistance Level: All-time high around 56,100
Yedve advises traders to maintain a ‘buy on dips’ approach for Bank Nifty, especially as long as it remains above the 54,450 level.
Conclusion
As the market gears up for another trading session, investors should keep an eye on the crucial support and resistance levels outlined. With a bullish sentiment prevailing, strategies focused on buying during dips may offer advantageous opportunities in the current landscape.
