The Indian stock market’s main indices, Sensex and Nifty 50, are expected to open flat today, mirroring the cautious sentiment in Asian markets.
The Gift Nifty trends suggest a flat start for the Indian benchmark index. It was trading around 24,635, a premium of nearly 12 points from the Nifty futures’ previous close.
On Monday, the Sensex and Nifty 50 hit new closing highs. The Sensex rose by 145.52 points to finish at 80,664.86, while the Nifty 50 gained 84.55 points, or 0.35%, closing at 24,586.70.
The Nifty 50 formed a small candle on the daily chart, with identical opening and closing levels.
“Technically, this pattern indicates a doji candle. Usually, a doji after an upmove suggests a potential reversal. But since this one formed within a range, the negative signal might be weak,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He added that the near-term trend for Nifty remains positive. Since Nifty is holding above the 24,400 level, there’s a good chance it might move up to 24,950 in the next week.
What to Expect from Nifty 50 and Bank Nifty Today:
Nifty Open Interest Data:
Deven Mehata, Research Analyst at Choice Broking, noted that on the call side, the highest open interest (OI) was at the 25,000 and 24,700 strike prices. On the put side, the highest OI was at the 24,500 strike price.
Nifty 50 Prediction:
On July 15, Nifty 50 continued its upward trend, closing 84 points higher.
“A doji pattern has formed on the daily chart, indicating indecisiveness. If Nifty falls below 24,520, there might be short-term panic. A drop below 24,250 could push the index to 24,200-24,180,” said Rupak De, Senior Technical Analyst at LKP Securities.
He mentioned that resistance is at 24,650, and moving above this could lead to further gains.
Rahul Ghose, CEO of Hedged.in, said that increased put writing at 24,600 and below suggests that Nifty will likely find support around this level for this week’s expiry.
“The PCR (Put-Call Ratio) opened at 1.05 and stayed flat, closing at 1.17. This suggests some upside potential at the all-time high (ATH), possibly continuing the pre-budget rally,” Ghose said.
VLA Ambala, Co-Founder of Stock Market Today, noted that Nifty’s price movement formed a Doji Star pattern, with RSI readings indicating overbought conditions.
“Market sentiment is positive due to strong results across IT, consumer, and retail sectors. The upcoming budget is a key event that could further boost the market. However, I recommend caution due to high index valuations,” Ambala said.
She expects Nifty to find support between 24,460 and 24,530 and face resistance between 24,720 and 24,850 today.
Bank Nifty Prediction:
On Monday, Bank Nifty rose 177 points, or 0.34%, to close at 52,455.90, forming a bullish candlestick pattern.
“Bank Nifty seems ready to break out from its recent consolidation. If it stays above 52,500, it could move up to 53,000. Significant put writing at 52,500 suggests support for Bank Nifty,” De said.
However, he cautioned that failing to move above 52,500 early on might lead to selling pressure.
“Increased put writing at 52,500 and below indicates support around these levels for the current weekly expiry. The max pain point is also at 52,500. The Bank Nifty PCR started at 0.77, traded flat in the first half, then rose to 1.19 in the second half, suggesting a possible retracement from higher levels,” Ghose added.
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