The Indian stock market is set for a cautious opening today, as the benchmark indices, Sensex and Nifty 50, are expected to decline slightly. This downturn comes amid mixed signals from global markets, with the Gift Nifty indicating a negative start. Currently, the Gift Nifty stands at approximately 23,366, reflecting a discount of around 67 points compared to the previous close of Nifty futures.

Market Sentiment and Recent Trends

Investor confidence took a hit after Jerome Powell, Chair of the U.S. Federal Reserve, announced on Wednesday that the central bank would adopt a patient approach, awaiting clearer economic signals before altering interest rates. Despite this, the Indian equity market managed to extend its rally for the third consecutive day, with the Nifty 50 closing above the 23,400 mark.

• Sensex surged by 309.40 points (0.40%) to finish at 77,044.29.
• Nifty 50 rose by 108.65 points (0.47%) to settle at 23,437.20.

What Lies Ahead for Sensex and Nifty 50

Sensex Outlook

The Sensex’s impressive performance yesterday resulted in a close above the 77,000 threshold, establishing a bullish pattern on the daily charts.

• Key Support: The level of 76,550 is crucial; maintaining above this could see the Sensex push towards 77,300.
• Potential Upside: If momentum persists, the index might even reach 23,575 or 77,500.

According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, if the Sensex dips below 76,550, the sentiment could shift, possibly testing the 76,500 – 76,200 range.

Nifty 50 Insights

The Nifty 50 continued its upward trajectory, gaining 108 points on Wednesday.

• Technical Signals: A bullish candle formed on the daily chart after overcoming the 200-Day Exponential Moving Average (EMA) resistance at 23,360.
• Immediate Resistance: The next significant hurdle is projected at 23,870, with support at 23,270.

Nagaraj Shetti, Senior Technical Analyst at HDFC Securities, emphasized that the recent gaps in the Nifty 50 could indicate ongoing bullish momentum.

Nifty’s Derivatives Data

In the derivatives market, the call side shows significant open interest at 23,800 and 24,000, indicating resistance levels. Conversely, the put side sees maximum open interest at 23,300, marking a vital support point.

Mandar Bhojane, a research analyst at Choice Broking, suggests that the current setup supports a bullish outlook, expecting momentum to continue if these resistance levels are breached.

Bank Nifty Performance

The Bank Nifty also displayed robust growth, climbing 738.25 points (1.41%) to close at 53,117.75.

• Strong Bullish Candle: The index formed a solid bullish candle above the declining trendline, signaling a continuation of the upward trend.
• Future Projections: Analysts predict that the Bank Nifty may target levels between 53,700 and 53,900 in the upcoming weeks.

Bajaj Broking Research noted the resilience in Bank Nifty compared to the broader market, while Hrishikesh Yedve, AVP of Technical and Derivatives Research, pointed out that as long as the index remains above 52,800, a ‘buy on dips’ approach is advisable.

Conclusion

As the Indian market prepares for today’s trading session, traders should remain vigilant of key support and resistance levels across indices. With ongoing developments, investors are encouraged to adopt a strategic approach, focusing on quality stocks while being cautious of market fluctuations.