The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open higher on Tuesday following mixed global market cues.
The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 24,250 level, a premium of nearly 40 points from the Nifty futures’ previous close.
On Monday, the domestic equity indices ended higher, with the benchmark Nifty 50 closing above 24,100 level.
The Sensex rallied 443.46 points to close at 79,476.19, while the Nifty 50 settled 131.35 points, or 0.55%, higher at 24,141.95.
Nifty 50 formed a reasonable positive candle on the daily chart, that has placed beside the small negative candle of previous session.
“This is a positive indication and suggests that the minor negative sentiment created on Friday could be nullified in the short term. Positive chart pattern like higher tops and bottoms is intact. Having formed a minor higher bottom in the last week, the market is on the uprun to form another higher top of the pattern at the new highs. Still there is no confirmation of any higher top reversal forming at the highs,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
He believes the underlying trend of Nifty remains positive. The market is racing towards the next upside target of 24,400 levels in the near term.
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Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One noted that the markets commenced the month of July on a positive note, dismissing any overly stretched parameters.
“The sustained uptrend is driven by sectoral rotation, broader participation, and a notable absence of challenges and pessimism on a global scale. It’s imperative to recognize that the market is overly stretched from a technical perspective, necessitating caution and vigilance rather than complacency in response to the recent movement,” Krishan said.
On a level-specific front, he believes the 24,000 mark serves as a crucial support level and any decisive breakdown could only temporarily ease the overbought conditions. On the higher end, Nifty may encounter an intermediate hurdle around 24,200 – 24,250 for the upcoming session.
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“Therefore, it’s advisable to take a pragmatic approach focusing on analyzing individual stocks. Simultaneously, thematic stocks have gained considerable traction in the current market scenario; hence, traders may find greater potential in focusing on these specific counters rather than solely on indices at their elevated levels,” Krishan said.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
Analysing the Nifty Open Interest (OI) data, Mandar Bhojane, Research Analyst at Choice Broking said that on the call side, the highest OI was observed at the 24,500 and 24,700 strike prices. On the put side, the highest OI was at the 24,000 strike price.
Nifty 50 Prediction
Nifty 50 continued to show upside momentum amidst a range bound action on July 1 and closed the day higher by 131 points.
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