Indian stock market benchmarks Sensex and Nifty 50 are expected to open on a cautious note on Thursday following weakness in global markets.

Trends on Gift Nifty indicate a slightly positive start for the Indian benchmark index. The Gift Nifty was trading around the 23,560 level, a premium of almost 25 points to the previous close of Nifty futures.

The Indian stock market was closed on Wednesday November 20 due to Maharashtra Election 2024.

On Tuesday, domestic equity benchmarks ended a seven-day losing streak and finished higher.

THE Sensex gained 239.37 points, or 0.31 per cent, to close at 77,578.38, while the Nifty 50 settled 64.70 points, or 0.28 per cent, higher at 23,518.50.

Nifty 50 formed a small negative candle with a long upper shadow and a slight lower shadow, indicating the market’s lack of strength to sustain the bounce.

“Technically there were only changes in price action at the close, but the midweek pre-holiday sell-off reiterates a cautious stance in the markets. The market appears volatile and it is advisable to avoid aggressive directional trading in key indices,” said Osho Krishnan, Principal Analyst, Technical and Derivatives, Angel One.

He noted that simultaneously, the technical setup paints a bearish view, requiring one not to be swayed by transitory pullbacks until there is evidence of sustained movement in domestic markets.

In the meantime, it is prudent to stay abreast of global developments, Krishnan said.

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

Nifty 50 Prediction

The Nifty 50 gained 65 points on November 19 and formed a bearish Marubozu candlestick pattern, closing significantly below its 200-day moving average (DMA).

“THE Clever 50 remained volatile throughout the session due to a sudden rise in geopolitical tensions between Russia and Ukraine, causing the index to once again fall below its 200ma. On the technical side, the Nifty has managed to hold above its recent low, indicating a potential bullish reversal until it crosses the 23,350 level. Conversely, if the index holds above 23,500 level, it may move towards 23,700-23,800 zone,” said Rupak De, Senior Technical Analyst at LKP Securities.

VLA Ambala, co-founder of Stock Market Today, advises market participants to approach the ‘sell up’ strategy from a trading perspective, while short-term investors should hedge their portfolios in order to reduce potential risks.

“On technical charts, Nifty formed a “bullish belt hold” candlestick pattern on the daily time frame. This formation was supported by the 200-day EMA and the RSI value of 36, indicating a potential bullish move. However, more sales may come in the coming months,” Ambala said.

After analyzing the market movements, Ambala expects Nifty’s support level to be near 23,420 and 23,300 and resistance to be at 23,750 or 23,880.

Bank Nifty Prediction

The Bank Nifty index rose 262.70 points, or 0.52 per cent, to close at 50,626.50 on Tuesday, forming a Doji-style candlestick pattern.

“Nifty Bank almost reached the 51,000 area but could not hold for much longer, with profits recorded to end the session near the 50,600 levels with the bias changing to cautious mode. The index would have a crucial support zone near the important 200-period MA of 49,800 levels below which the overall trend would turn bearish,” said Vaishali Parekh, vice president of technical research at Prabhudas Lilladher.

The Bank Nifty index is likely to move between 50,000 and 51,000 today, she added.

According to VLA Ambala, Bank Nifty may find support at 50,250 and 50,000 and face resistance around 50,650 and 50,800.

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.