The Indian benchmark equity indices are likely to open higher Wednesday led by positive global cues.
The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading flat at around 19,370 level as compared to the Nifty futures’ previous close of 19,340.
On Wednesday, the benchmark indices, Sensex and Nifty, ended flat with a positive bias dragged by late-hour profit booking. The Nifty ended 5 points higher at 19,348.
Nifty formed a long negative candle on the daily chart.
“Technically, this pattern indicates bearish counter attack type candle pattern after a small bounce. The negative chart pattern like lower tops and bottoms is intact on the daily chart and Wednesday’s high of 19,452 could now be considered as a new lower top of the sequence. Hence, one may expect further weakness in the short term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
He expects the short term trend of Nifty to remain choppy.
Also Read: 5 things that changed for market overnight: Gift Nifty, US GDP among key global cues for Sensex today
Here’s what to expect from Nifty and Bank Nifty today:
Nifty
“The Nifty index encountered a robust resurgence of bearish momentum, leading to considerable selling pressure at elevated levels. Amidst this downturn, the addition of substantial open interest in the 19500 CE options signifies that the index is poised to expire below the 19,500 mark.
In terms of technical levels, the index’s immediate support on the downside is evident in the range of 1,9300-19,250. A failure to sustain above this level could potentially trigger a continuation of the downward movement,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Also Read: Day trading guide for today: Six stocks to buy or sell on Thursday — August 31
Bank Nifty
Bank Nifty index declined 263 points to end at 44,233 on August 30 amid selling in select banking heavyweight.
“The Bank Nifty index experienced a significant bearish takeover, leading to a rapid correction of 600 points from the day’s high. As the index navigates this downward movement, its next significant support on the downside is positioned at 44,000. This level is crucial, given the substantial open interest built up on the put side,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Shah believes the overall market sentiment remains bearish, with considerable resistance anticipated around the range of 44,500 to 44,700 levels.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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