Sensex and Nifty 50 Set to Surge on Monday: What Traders Should Expect After US Fed’s Dovish Tone

Indian stock market indices, Sensex and Nifty 50, are expected to open higher on Monday, driven by positive signals from global markets.

The Gift Nifty indicates a positive start, trading around 24,915, which is about 60 points higher than the previous close of Nifty futures.

On Friday, the Indian markets closed slightly up. The Sensex gained 33.02 points to end at 81,086.21, and the Nifty 50 rose 11.65 points, or 0.05%, to close at 24,823.15.

Nifty 50 formed a small negative candle on the daily chart, indicating limited movement within a 90-point range. According to Nagaraj Shetti from HDFC Securities, Nifty is close to a resistance level between 24,850 and 24,950. He suggests that if the Nifty 50 keeps moving up, it could reach 25,000 to 25,100 soon.

Predictions for Nifty 50 and Bank Nifty Today:

Nifty 50 Outlook:

Nifty 50 showed minor gains on August 23, trading in a narrow range. The RSI (Relative Strength Index) shows a bullish trend, and the market remains positive above the 21-day EMA (Exponential Moving Average). Analysts suggest a “buy on dips” strategy while Nifty stays above 24,650, with resistance at 24,850 – 24,900/25,000. If it drops below 24,650, there could be a significant correction.

VLA Ambala, Co-Founder of Stock Market Today, advises avoiding overbought stocks and taking safe profits. She notes that while global markets are gaining, the Indian market remains strong, despite challenges like inflation and unemployment. Nifty may find support around 24,760 and 24,700, with resistance at 24,890 and 24,965.

Bank Nifty Outlook:

Bank Nifty closed slightly lower by 52 points at 50,933, forming a bearish pattern on the daily charts. Amol Athawale from Kotak Securities suggests that as long as Bank Nifty trades above 50,700, the bullish trend may continue, potentially reaching up to 51,500 or even 51,800. However, if it falls below 50,700, it could drop to between 50,250 and 50,000.