The Indian stock market is poised for a subdued opening on Friday, reflecting a mix of global market signals. The trends observed in the GIFT Nifty suggest a soft start for the Indian benchmarks, with GIFT Nifty trading around 23,217, indicating a modest premium of 17 points over the previous Nifty futures close. On Thursday, however, the domestic equity market registered its fourth consecutive day of gains, with the benchmark Nifty 50 closing near 23,200.
Sensex and Nifty 50 Performance
The Sensex surged by 899.01 points, equivalent to 1.19%, wrapping up at 76,348.06, while the Nifty 50 gained 283.05 points, or 1.24%, finishing at 23,190.65. This positive trend has analysts optimistic for the upcoming trading session.
Market Sentiment and Predictions
The Indian indices have maintained a robust upward trajectory. Shrikant Chouhan, the Head of Equity Research at Kotak Securities, mentioned that the Sensex has crossed the critical 50-day Simple Moving Average (SMA) and the 75,700 resistance level, indicating a bullish outlook. He advises day traders to consider a strategy of buying on dips while selling during rallies.
- Key Support Levels: 76,000 and 75,700
- Resistance Levels: 76,500 and 76,800
Chouhan cautioned that if the Sensex falls below 75,700, market sentiment may shift, prompting traders to reconsider their long positions.
Nifty OI Data Analysis
On the Nifty options front, the maximum Call Open Interest (OI) is concentrated at the 23,500 and 23,000 strikes, while the Maximum Put OI lies at 23,000 and 22,500. Chandan Taparia, the Head of Derivatives and Technicals at Motilal Oswal Financial Services, noted that recent call writing at 23,400 and 23,200 indicates a broader trading range between 22,800 to 23,800, with an immediate focus on 23,000 to 23,400.
Nifty 50 Technical Insights
The Nifty 50 has been on a remarkable rally, closing with a substantial gain of 283 points. Nagaraj Shetti, a Senior Technical Research Analyst at HDFC Securities, highlighted that the formation of a bullish candle signals a potential breakout beyond the 23,200 resistance level, which could propel the index toward 23,800 in the near term.
- Immediate Support: 23,070
- Potential Resistance: 23,800
Om Mehra from SAMCO Securities emphasized that the Nifty 50 has remained above the 61.8% Fibonacci retracement level at 23,110, indicating a sustained bullish sentiment. As long as the index holds above 22,950, a buy-on-dips strategy remains favorable.
Insights on Bank Nifty
The Bank Nifty also showed strength, closing at 50,062.85, marking a 0.72% increase and a sixth consecutive day of gains. Analysts are optimistic about the Bank Nifty maintaining its positive momentum, with expectations to reach 50,600 as it approaches the upper band of its 10-week consolidation range.
- Immediate Support: 49,200 to 49,000
- Resistance Level: 50,640
Bajaj Broking Research suggests that a breakout beyond the upper band could signal a significant upward trend, potentially aiming for levels between 51,500 to 52,000 in the coming weeks.
Mehra reiterated that as the Bank Nifty inches closer to its previous swing high of 50,642, a decisive breakout could enhance bullish momentum. Traders are encouraged to adopt a ‘buy on dips’ strategy, especially if the index pulls back to the 49,650 – 49,700 zone.
Conclusion
As the Indian stock market prepares for the day’s trading, key levels of support and resistance will be crucial for investors. The overall sentiment remains bullish, and traders are advised to stay vigilant, adopting strategies that leverage market fluctuations. Keep an eye on market developments and adjust your trading strategies accordingly to maximize opportunities.
