The Indian stock market is bracing for a subdued opening today, as key indices like Sensex and Nifty 50 reflect mixed signals from global markets. Notably, the GIFT Nifty is hinting at a downward trend, trading around the 24,375 mark, which is nearly 50 points below the previous close of Nifty futures. On Tuesday, the domestic market experienced a somewhat flat session, with Nifty 50 managing to stay above the 24,300 threshold.

Market Performance Overview

On Tuesday, the Sensex increased by 70.01 points, or 0.09%, closing at 80,288.38. Meanwhile, the Nifty 50 saw a minor rise of 7.45 points, or 0.03%, finishing at 24,335.95. Here’s what investors can expect from the Indian market today.

Sensex Outlook: Key Resistance and Support Levels

Currently, the Sensex is encountering resistance in the vicinity of 80,500, where it formed a small bearish candle on Tuesday, indicating a standoff between bullish and bearish sentiments. Shrikant Chouhan, Head of Equity Research at Kotak Securities, commented, “If the Sensex breaks 80,500, it could potentially surge towards 80,800 to 81,000. Conversely, a drop below 80,000 might intensify selling pressure, leading to a quick correction toward 79,700 to 79,500.”

Nifty 50 Analysis: Shifts in Trader Sentiment

The options market is revealing a cautious shift in trader sentiment, with call writers increasing their positions significantly, surpassing put writers. This development serves as a warning for bullish strategies.

• The 24,500 strike has accumulated 1.65 crore contracts, suggesting it is a formidable resistance point.
• On the flip side, the 24,000 strike has seen robust put writing, totaling 1.12 crore contracts, reinforcing its role as key support.

Dhupesh Dhameja, a Derivatives Research Analyst at SAMCO Securities, highlighted that the Put-Call Ratio (PCR) has plummeted from 1.17 to 0.84, indicating a growing sense of caution among traders. The Max Pain level remains steady at 24,300, suggesting a range-bound market until a breakout occurs.

Nifty 50 Short-Term Forecast

The Nifty 50 has entered a phase of consolidation, closing slightly higher on Tuesday by 7 points. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, pointed out that “The formation of a small red candle with a minor upper shadow indicates a failed attempt to break past the 24,350 to 24,400 levels. This suggests more consolidation in the near term.”

He believes that immediate support lies at 24,150, and breaking the resistance level of 24,450 could pave the way for a target of 24,850.

Bank Nifty Trends: A Cautious Consolidation

The Bank Nifty index decreased by 41.55 points, or 0.07%, concluding at 55,391.25 on Tuesday. It is forming a small bearish candle, indicating consolidation after a strong rally. According to Bajaj Broking Research, “A sustained move above the recent high of 56,098 could open the door for further gains toward 56,800. However, if it fails to surpass this level, we may see continued consolidation within the 54,000 to 56,000 range.”

Hrishikesh Yedve noted that Bank Nifty formed a shooting star candle, indicating supply pressure around the 56,000 mark, while key support is expected at 54,450. He anticipates that the index will consolidate between 54,450 and 56,000 in the near term.

Final Thoughts

In conclusion, the Indian stock market is poised for a cautious day ahead, with key resistance and support levels to watch for both Sensex and Nifty 50. Investors should stay alert to market trends, as the ongoing earnings season may bring stock-specific opportunities.