The Indian stock market is set to open on a positive note on Wednesday following strong global sentiment and cues from the Gift Nifty. Gift Nifty futures traded near 26,159, indicating an upbeat start with a premium of about 104 points over Tuesday’s close of Nifty futures.
On Tuesday, domestic equities extended their losing streak for a third consecutive session. The Nifty 50 slipped below 25,900 and the Sensex fell 313.70 points to close at 84,587.01. The Nifty finished the November F&O series at 25,884.80, down 74.70 points.
Sensex Outlook
The Sensex has formed a bearish candle on the daily chart and continues to show a lower-top pattern, reflecting weak short-term sentiment.
Market experts believe that the 85,000–85,200 zone acts as a big resistance. The pressure is likely to continue unless the index crosses above this band and sustains there.
- Immediate support: 84,300
- Further downside risk: 84,000
- Upside target on breakout: 85,500 – 85,700
Nifty OI Trends
Open interest data for Nifty indicates aggressive call writing at 26,000, while the highest put OI at 25,800 signals strong buying interest at lower levels. A close above 26,000 will be crucial to shift the momentum back in favor of the bulls.
Nifty 50 Prediction
Nifty formed its third consecutive bearish candle, showing lower high and lower low formation, which is a hint that profit booking continues near record highs.
Analysts say:
- We are currently in a short-term downtrend in the market, wherein sellers are active on every rise.
- The index now is around the 21-day moving average at 25,850. A breakdown below this can extend weakness toward 25,700.
- The broader trend remains positive as long as Nifty holds above the 50-DMA near 25,490. This makes a buy-on-dips strategy suitable.
Key levels to watch:
- Support: 25,850 – 25,800 (20-day EMA zone)
- Deeper support: 25,600
- Resistance: 26,000 – 26,050
It would now take a sustained move above 26,000 to trigger some short covering and restart the upward move toward 26,200.
Bank Nifty Prediction
Bank Nifty ended marginally lower at 58,820.30, and formed a red candle with long upper wicks, indicating selling pressure at higher levels.
Important levels:
- Immediate support: 58,580
- Further support: 58,000 – 57,800
- Major resistance: 59,440
Analysts suggest booking of profits on rallies as long as the Bank Nifty stays below 59,440.
On the upside, the index is consolidating above the breakout zone of 58,200 – 58,500. This area is now expected to act as strong support.
If Bank Nifty sustains these levels, it may gradually
move towards 59,800 in the coming weeks. The current consolidation may be
utilised to accumulate quality banking stocks.
Disclaimer: These views are
those of the respective market analysts quoted and not those of ICFM. Investors
should consult certified financial advisors before making investment decisions.
