The Indian stock market may open lower on Tuesday, influenced by mixed global signals as the U.S. Presidential Election approaches. Gift Nifty indicates a weak start, trading at around 24,080, about 35 points below the Nifty futures’ last close.
On Monday, Indian markets dropped sharply, with the Sensex falling 941.88 points (1.18%) to close at 78,782.24, and the Nifty 50 losing 309 points (1.27%) to end at 23,995.35. This resulted in a strong bearish candle pattern on the daily chart, signaling potential further declines.
Nagaraj Shetti, Senior Technical Analyst at HDFC Securities, notes that this pattern suggests a downward breakout in Nifty 50’s recent range. With lower highs and lows forming, the market may continue in a bearish trend in the short term, with key support at 23,500 (200-day EMA). Any bounce may face resistance around 24,200.
What to Watch for in Nifty 50 and Bank Nifty Today
- Nifty 50 Outlook: Nifty 50’s trend remains weak. Short-covering rallies may be brief, providing opportunities for traders to cut long positions and initiate new shorts. Resistance lies at 24,200-24,340, while 23,800 is the immediate support. A close below 23,800 could push it toward 23,500.
- Bank Nifty Outlook: Bank Nifty closed down 458.65 points (0.89%) at 51,215.25 on Monday. Private banks led the decline, while PSU banks offered some stability. Support levels are at 50,800, with further downside at 50,200 if it breaks. Resistance is expected at 51,600-51,840.
Analysts suggest traders keep a close eye on these levels as market volatility may increase with global uncertainties and domestic earnings announcements.
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