Indian stock market benchmarks Sensex and Nifty 50 are expected to open on a positive note on Tuesday, tracking gains in their global peers.

Trends on Gift Nifty also indicate a slightly positive start for the Indian benchmark index. The Gift Nifty was trading around the 23,550 level, a premium of nearly 35 points to the previous close of Nifty futures.

Domestic stock market indices on Monday extended their losing streak for the seventh straight session with the Nifty 50 closing below the 23,500 level.

THE Sensex fell 241.30 points to close at 77,339.01, while the Nifty 50 settled 78.90 points, or 0.34 per cent, down at 23,453.80.

Nifty 50 formed a bearish candle on the daily charts and is currently trading comfortably below the 200-day SMA (Simple Moving Average), which is largely negative.

“The Nifty 50 and Bank Nifty are currently trading close to their 200-day exponential moving averages (EMA). However, the Nifty 50 closed below this key level, indicating potential bearish momentum. Immediate support levels are seen at 23,200 and 23,000, which could present buying opportunities for traders. Overall, the market outlook looks rather bearish in the near term,” said Mandar Bhojane, research analyst at Choice Broking.

He advises traders to avoid long positions unless the index decisively crosses the 23,800 and 24,000 levels, as further downside risks remain. In this volatile environment, caution and strict risk management are essential.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Clever RO data

In the derivatives market, Nifty’s open interest (OI) data revealed the highest buy OI at strike prices of 23,500 and 23,700, while the highest sell OI High was seen at the strike price of 23,400. This OI distribution suggests potential resistance around the 23,500 level, with further upside likely if the Nifty manages to hold above this resistance, Bhojane said.

Nifty 50 Prediction

The Nifty 50 index continued its bearish momentum on November 18 and closed down 78.90 points, or 0.34 per cent, at 23,453.80.

“The Nifty 50 showed some volatility during the day, approaching a historic level of congestion on the daily time frame. On the daily chart, the index has been trading below the 200-day moving average (DMA) for the past two sessions. The RSI has entered the oversold zone, accompanied by a bearish crossover. Although the overall chart pattern remains weak, selling pressure appears to have eased after a prolonged correction. In the short term, the index may rally towards 23,700 – 23,800. On the downside, support is positioned between 23,200 and 23,300,” said Rupak De, Senior Technical Analyst at LKP Securities.

VLA Ambala, co-founder of Stock Market Today, noted that the Nifty 50 index has corrected by 11% in the last eight weeks, with the weekly RSI falling from 76 to 42, indicating a downward trend.

“On the technical chart, Nifty is trading above 23,500, which is a weaker support zone than 23,000. According to market analysis, investors should avoid short-term withdrawals and hedge their portfolios for take advantage of potential short selling opportunities,” Ambala said.

According to Dr. Praveen Dwarakanath, Vice President, Hedged.in, Nifty 50 tested its crucial support at 23,350 levels, a breakout that can send the index down to 22,800 levels.

“Momentum indicators on the daily chart show a positive divergence, indicating a possible rebound from the dead cat towards the 23,800 levels before the November expiration, however, this can be used as an opportunity to sell the index. Options writers data for monthly expiry showed an increase in call subscriptions of 23,500 levels, indicating weakness that is expected to continue,” Dwarakanath said.

Bank Nifty Prediction

The Bank Nifty index outperformed the leaders and closed on Monday with gains of 184.25 points, or 0.37%, at 50,363.80, forming

“The Bank Nifty index has moved below its consolidation level between 53,000 and 51,000, however, it has not retested this consolidation level, and a retest may become an opportunity to sell the index at the increase. Weekly momentum indicators continue to show weakness in the index,” Dwarakanath said.

According to him, monthly expiration data from options writers showed an increase in put writing at levels of 50,500 and below and call selling at levels of 50,500 and above, indicating a pause at the current index level.

From a technical point of view, VLA Ambala pointed out, Bank Nifty is trading with an RSI of 40 on the daily chart and 41 on the weekly chart.

“Intraday traders might consider a buy-the-dip strategy, while swing traders should exercise caution as broader trends point to a sell-on-the-trend scenario. Bank Nifty may find support near 49,800 and 49,650 and encounter resistance between 50,850 and 51,000,” Ambala said.

Disclaimer: The opinions and recommendations stated above are those of individual analysts or brokerage firms, and not of Mint. We advise investors to consult certified experts before making any investment decisions.