The Indian stock market, represented by the Sensex and Nifty 50 indices, is expected to open on a flat note today, influenced by mixed global cues. The Gift Nifty, which offers an early indication, suggests a slightly positive start with a small premium of 22 points.
On Monday, the Nifty 50 saw its 13th consecutive day of gains, rising by 42.80 points to close at 25,278, while the Sensex increased by 194.07 points, finishing at 82,559.84.
Technical analysts have noted that while the market is moving up, the recent narrow-range movement and weak market breadth are not promising signs. Nifty 50 is currently facing resistance around the 25,350 level. A strong move above 25,400 could push it towards the next target of 25,800.
Nifty and Bank Nifty Outlook:
- Nifty 50: There’s significant call writing at the 25,300 strike, which may keep the trend sideways to negative unless Nifty moves above 25,300. On the downside, support is expected around 25,000, while resistance lies between 25,340 and 25,400. A dip of 100-140 points might offer a buying opportunity.
- Bank Nifty: After ending slightly higher on Monday, Bank Nifty is facing strong resistance at 51,530. A close above this level could trigger a rally towards 52,000-52,400. Support is expected between 51,240 and 50,950 levels.
Experts suggest caution as the market is currently in an overbought zone. While the overall trend remains bullish, it’s wise to focus on undervalued stocks. A dip between 5% and 15% could present a buying opportunity.
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