The Indian stock market is expected to open flat with a positive bias tracking mixed cues from global peers.
The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 20,073 level as compared to the Nifty futures’ previous close of 20,037.
After witnessing a sustainable upmove in the last seven sessions, the Indian market seems to have started selling pressure from the all time highs of 20,100 levels on Tuesday with broader market indices like midcap and small cap witnessing sharp sell off from the all time highs.
On Tuesday, the frontline indices Sensex and Nifty ended flat, while the midcap and smallcap indices plunged. The Sensex ended 94.05 points, or 0.14%, higher at 67,221.13, while the Nifty closed 3.15 points, or 0.02%, lower at 19,993.20.
Nifty formed a long bear candle on the daily chart at the all time high of 20,110 levels.
“Though this market action indicates minor reversal in nature, we need confirmation by way of more weakness in the next session to call this a top reversal. The sharp sell off in broad market indices are indicating more weakness ahead for the benchmark Nifty in the coming sessions. A decline below 19,850 levels could confirm a short term top reversal pattern for the market,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Also Read: 6 things that changed for market overnight: Gift Nifty, Apple shares, inflation to global market cues for Sensex today
Here’s what to expect from Nifty and Bank Nifty today:
Nifty
Nifty witnessed a correction as sellers exerted pressure around the 20,100 level.
“The correction was contained, thanks to put writers at 19,900 who helped shield the market from further declines. In the short term, the headline index Nifty is expected to maintain its strength as long as it stays above the critical short-term support level of 19,780. On the higher end, a decisive move above 20,100-20,150 could propel Nifty toward 20,500 in the short term,” said Rupak De, Senior Technical analyst at LKP Securities.
Also Read: Day trading guide for today: Six buy or sell stocks for Wednesday —September 13
Bank Nifty
The Bank Nifty index snapped a three-day winning streak to end 59 points lower at 45,511.
“Call writers have significantly increased open interest at the 46,000CE strike, which is now acting as a strong resistance level. On the downside, key support is seen at 45,200, and if it manages to hold this support, we could witness some recovery towards 45,600 or 45,800 levels,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
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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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