Indian stock market indices, the Sensex and Nifty 50, are expected to open flat or slightly lower today due to mixed signals from global markets. The trends in the GIFT Nifty indicate a slow start for the Indian benchmark index, trading around the 24,925 level, which is about 25 points lower than the previous Nifty futures close.
On Friday, the domestic market ended a three-day decline, with the Sensex gaining 218.14 points to close at 81,224.75. The Nifty 50 rose 104.20 points, or 0.42%, finishing at 24,854.05. The Nifty 50 formed a ‘high wave’ candlestick pattern on the weekly chart and a ‘Marubozu’ on the daily chart at the 20-day Exponential Moving Average (EMA).
According to VLA Ambala, Co-Founder of Stock Market Today, the Nifty 50 corrected by 6.5% after reaching record highs in September. He suggests a cautious approach for short-term investors but encourages medium- and long-term investors to look for quality stocks that are currently undervalued. The Nifty’s Relative Strength Index (RSI) indicates a “buy on dip” strategy for swing or intraday trading.
Nifty 50 and Bank Nifty Predictions
Nifty OI Data:
Nifty options data shows significant open interest (OI) at the 25,500 level on the put side, suggesting support at that level. On the call side, notable OI is seen at the 25,000 and 25,500 levels. Traders should consider buying on dips and set stop-loss orders below identified support levels, according to Mandar Bhojane, Technical Analyst at Choice Broking.
Nifty 50 Outlook:
Nifty 50 closed positively on October 18, forming a positive candle on the daily chart. Dr. Praveen Dwarakanath from Hedged.in notes that the index bounced from its crucial support of 24,700 levels. However, data indicates potential weakness due to increased call writing at 24,800 and above levels.
Aditya Agarwal, Head of Derivatives & Technical Analysis at Sanctum Wealth, believes Nifty 50 is currently oversold and could see short covering. He suggests traders might book profits around the 24,950 – 25,050 levels, with immediate support at 24,700 – 24,650.
Bank Nifty Outlook:
Bank Nifty closed at 52,094.20 on Friday, gaining 805.40 points or 1.57%. Dwarakanath observes a bullish pattern forming on the daily charts, indicating potential upside to 52,500 levels.
Agarwal notes that Bank Nifty respected its support at 51,000 and closed above 52,000. The short-term outlook remains positive, with potential moves toward 52,480 – 52,760. Traders can consider entering on dips toward 51,620 or 51,440, while a close below 50,800 would negate bullish views.
In summary, investors should stay cautious but watch for buying opportunities in both indices as market conditions unfold today.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
