Indian equity markets are set to open on a strong note on Thursday, as positive cues from global markets and firm indications from Gift Nifty hinted at that possibility. The Gift Nifty traded near 26,447, about 66 points above the previous Nifty futures close, signaling a higher opening for benchmark indices.
On Wednesday, the domestic markets witnessed a strong rally. The Nifty 50 ended firmly above the 26,200 level, while the Sensex rose 1,022.50 points or 1.21% to 85,609.51. The Nifty 50 also surged 320.50 points or 1.24% to 26,205.30.
Bank Nifty too extended its rally and scaled a new peak of 59,554.95 in the last session. Now, the big question is, will the Sensex and Nifty be able to make new highs today, as both indices are now trading close to their all-time highs?
Sensex Outlook
The Sensex has formed a robust bullish reversal pattern on daily charts, which comes along with a long green candle, thereby encouraging the market bulls.
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, key supports lie at 85,000-85,300. The positive structure will remain intact as long as the index remains above these levels. Resistance on the upside is expected near 86,000-86,200. Any decisive break below 85,000 could weaken the uptrend.
According to Mayank Jain, Market Analyst at Share.Market, the 85,800–86,000 range is a crucial resistance zone. A strong breakout above this region may open the gates for fresh lifetime highs. Support is placed around 85,100–85,000.
Nifty OI Trends
In the derivatives market, the confidence of traders manifests in heavy call writing at the 26,000 strike price, while maximum put open interest at 25,800 reflects strong buying interest at lower levels.
Hitesh Tailor, Research Analyst at Choice Equity Broking, said that to re-establish the bullish momentum and further accelerate the upside in the near term, it is crucial to see a sustained close above 26,000.
Nifty 50 Prediction
The Nifty 50 formed a strong bullish candle on Wednesday, thereby engulfing the trading range of the previous four sessions—a good technical signal.
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the broader positive pattern of higher highs and higher lows is intact. The fall to 25,842 on Wednesday appears to be a fresh higher bottom that sets the stage for new record highs. He expects Nifty to potentially reach 26,300 and 26,500 in the coming sessions with immediate support at 26,050.
Sudeep Shah, Head-Technical and Derivatives Research at SBI Securities said 26,270- 26,300 is a crucial resistance area. A close above it may take Nifty around 26,500- 26,700. The supports have moved up to 26,050- 26,000.
Mayank Jain echoed this by saying that 26,250–26,300 is now an important trigger point. A close above this region may drive Nifty toward 26,500+, while support remains firm at 25,900–26,000.
Bank Nifty Prediction
Bank Nifty added 707.75 points (1.20%) and closed at 59,528.05, forming a strong bullish candle indicating sustained strength.
According to Hrishikesh Yedve, AVP Technical and Derivative Research at Asit C. Mehta Investment Intermediates, the index may extend its rally toward 60,000, provided it holds above 59,400. He suggests a buy-on-dips approach in the near term.
Meanwhile, Ponmudi R, CEO of Enrich Money, opined that the support zone of 59,400 has been held consistently as strong intraday support by Bank Nifty. A conclusive close above 60,000 may take the index towards 61,000. On the downside, 59,000–58,841 remains a firm support zone.
Disclaimer: The above-mentioned views and projections are those of the respective analysts and brokerage firms. Investors should consult certified financial advisers before making investment decisions.
