The Indian stock market is likely to open higher on Thursday led by positive global cues as the Asian markets traded higher while US stocks ended mixed overnight.
The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading higher at 20,183 level as compared to the Nifty futures’ previous close of 20,129.
The domestic benchmark equity indices witnessed a decent rally on Wednesday with the benchmark Nifty closing above 20,000 level for the first time ever.
On Wednesday, the Sensex rallied 245.86 points to 67,466.99, while the Nifty ended 76.80 points higher at 20,070.
Nifty formed a reasonable positive candle on the daily chart that placed beside the negative candle of Tuesday.
“Technically this market action indicates that bulls are still not out of the game. Though selling pressure is emerging from near 20,100 levels, there is no confirmation of any top reversal pattern forming at the new highs. But, a decisive upmove above 20,100-20,150 levels is expected to bring more upside towards 20,350-20,450 levels in the near term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
Also Read: 5 things that changed for market overnight: Gift Nifty, US inflation to global market cues for Sensex today
Here’s what to expect from Nifty and Bank Nifty today:
Nifty
The frontline Nifty index ended above the 20,000 mark, marking a historic closing high.
“The prevailing sentiment remains optimistic, contingent on put writers safeguarding the 19,900 level. A drop below 19,900 could unsettle put writers, potentially triggering market corrections.
On the upside, the 20,100-20,150 range is poised to act as resistance,” said Rupak De, Senior Technical analyst at LKP Securities.
He expects a clear breakthrough above 20,150 might propel Nifty into a sustained upward trend.
Also Read: Day trading guide for today: Six stocks to buy or sell on Thursday — 14th September
Bank Nifty
The Bank Nifty index rallied 398 points to close at 45,909 on Wednesday.
“The bulls took charge and dominated the market, resulting in the formation of a bullish engulfing candlestick pattern on the Bank Nifty index. This pattern signifies a potential reversal of the previous bearish sentiment. The lower-end support for the index is now established in the range of 45,700-45,600, serving as a strong cushion for the bulls and providing a crucial level of defense against any downward pressure,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Looking ahead, the immediate hurdle on the upside is situated at the 46,000 mark, he added.
“A successful breach above this level would likely pave the way for further upward momentum, with potential targets at 46,300 and 46,600 levels,” said Shah.
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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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