The Indian stock market’s benchmark indices, Sensex and Nifty 50, are poised to open lower on Thursday, influenced by mixed cues from global markets. The trends on the Gift Nifty indicate a potential decline, with trading around 26,078, reflecting a discount of approximately 58 points from the Nifty futures’ previous close.
Investors are particularly focused on the two-day state visit of Russian President Vladimir Putin to India, which commences today. Market participants are keenly awaiting the outcomes of the bilateral discussions between President Putin and Prime Minister Narendra Modi.
On Wednesday, the Indian stock market witnessed extended losses for the fourth consecutive session. The benchmark Nifty 50 fell below the significant 26,000 mark, closing at 25,986.00 after a decline of 46.20 points or 0.18%. Similarly, the Sensex dropped by 31.46 points, settling at 85,106.81.
Market analysts have provided insights into what to expect from Sensex, Nifty 50, and Bank Nifty in the upcoming trading session. The Sensex is facing resistance in the 86,000 to 86,200 region, with a breakout above this zone potentially leading to new record highs. Major support is anticipated around 85,100 to 85,000.
In terms of Nifty options, the derivatives setup appears cautious. Call writers have aggressively added positions at near and at-the-money strikes, while put writers have shifted to lower strikes, indicating a belief in continued market consolidation or a slight negative bias. A significant accumulation of call contracts at the 26,000 strike establishes it as a formidable resistance, while strong put open interest at the 25,500 strike highlights this level as crucial support.
The Nifty 50 has formed a small red candle on the daily chart, suggesting uncertainty. The ongoing formation of lower highs and lower lows indicates persistent selling pressure. For a meaningful recovery and potential movement towards the 26,300 zone, the Nifty must decisively reclaim and sustain above 26,100. Until that occurs, the market will likely remain in a corrective and consolidative phase. Immediate support for Nifty is seen at 25,850 to 25,800, with resistance placed in the zone of 26,050 to 26,100.
On Wednesday, Bank Nifty closed at 59,348.25, gaining 74.45 points, or 0.13%, and forming a bullish candle with a long lower shadow, indicating buying interest at lower levels. However, while it remains below 60,114, any upward movement is seen as an opportunity for profit booking. Immediate support is around 58,860, where the 21-day exponential moving average (DEMA) is situated, while the 60,000 to 60,120 range presents significant resistance.
As a cautious approach is advised, especially with the RBI policy announcement scheduled for Friday, volatility is expected. Analysts suggest a strategy of buying near support levels and selling near resistance for Bank Nifty.
Investors and traders are encouraged to remain vigilant and consult certified experts before making any investment decisions based on individual recommendations or market analyses.
