The Indian stock market is expected to open higher on Wednesday, following positive global trends.
Gift Nifty suggests a strong start, trading around 23,838, which is 53 points higher than the previous Nifty futures close.
On Tuesday, the stock market saw a sharp rise. The Sensex surged by 1,397.07 points (1.81%) to close at 78,583.81, while the Nifty 50 gained 378.20 points (1.62%) to finish at 23,739.25.
Nifty 50 has confirmed a bullish pattern called the “inverse head-and-shoulders,” closing above the key level of 23,680, which signals potential for further gains.
What we can expect from Sensex, Nifty 50 and Bank Nifty Today?
Sensex Prediction
The Sensex saw a strong rebound on Tuesday, closing 1,397 points higher.
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the market showed strength after opening higher, breaking past the 77,800 resistance level. This breakout led to increased buying, pushing the index further up. He also noted that the formation of a bullish candle on daily charts and an uptrend pattern on intraday charts suggest that the rally may continue.
For traders, the key support levels are at 77,800 and 78,100, while resistance is expected between 78,700 and 78,900. Chouhan suggests a strategy of buying on dips during the day and selling on rallies to maximize gains.
Nifty 50 Prediction
On February 4, the Nifty 50 surged by 378 points, marking a strong upward breakout.
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, Nifty 50 formed a long bullish candle on the daily chart, breaking past the 23,600 resistance level and reclaiming the 200-day EMA (Exponential Moving Average). This breakout suggests a clear upward trend. The lowest point on Monday, 23,222, can now be considered a new support level, signaling a shift away from previous bearish trends. This is a positive sign for the market.
The short-term trend for Nifty 50 is strongly upward. After crossing the 23,600 resistance level, it is expected to move toward 24,000 in the near future, with support at 23,550.
Dr. Praveen Dwarakanath, Vice President of Hedged.in, mentioned that Nifty 50 is gaining strength after finding support in the middle of the Bollinger band. The momentum indicators on the hourly chart show continued bullishness, and the index formed a professional gap after a previous decline, signaling further movement toward the 23,800 resistance level. Options data suggests increased put writing at 23,800 and below, along with short covering in ITM calls, reinforcing the bullish sentiment.
VLA Ambala, Co-Founder of Stock Market Today, pointed out that Nifty 50 closed at the 23,500 resistance level, supported by its 50-day EMA. The RSI indicator stood above 55 on the daily chart, indicating moderate buying opportunities. Ambala suggests that investors focus on stocks with strong Q2 and Q3 earnings that align with sector valuations. Based on technical analysis, Nifty 50 is expected to find support between 23,600 and 23,700, while resistance is likely between 23,850 and 23,950 in the next session.
Bank Nifty Prediction
Bank Nifty ended the session at 50,157.95, rising 1.93%, and crossing the key 50,000 mark after a long period of sideways movement.
Om Mehra, Technical Analyst at SAMCO Securities, said the index formed a strong bullish candle on the daily chart, showing renewed strength. It is now above its 20-day moving average (DMA) and has surpassed the 38.2% Fibonacci retracement level at 50,120, which signals a positive shift in momentum.
Key levels to watch:
Support: 48,500
Resistance: 50,820 (50% Fibonacci retracement level)
Dr. Praveen Dwarakanath pointed out that Bank Nifty closed above the upper Bollinger band, showing strong market sentiment. It took support from the middle of the Bollinger band before bouncing back, further confirming bullishness.
Momentum indicators are pointing upwards, suggesting further gains.
ADX (Average Directional Index) shows strengthening momentum, with the DI+ line crossing above the DI- line.
Options data shows more put options being written at 50,000 and lower, reinforcing a bullish outlook.
In summary, Bank Nifty is showing strength, and if it stays above 50,000, it may continue its upward movement.
Disclaimer: The views and recommendations above are those of individual analysts or brokerage firms and do not reflect the opinions of Ved Khabar. Investors should consult certified financial experts before making any investment decisions. Ved Khabar does not recommend any.