Indian stock exchanges can start Thursday's session on a defensive mode. Early indications from the Gift Nifty indicate a weakish opening for the Nifty 50, which is quoting at 25,171 — about 40 points down from its last futures close.
How Markets Fared Yesterday (June 11)
- Markets registered a calm but upbeat closing on Wednesday.
- Nifty 50 jumped 37 points, finishing at 25,141.40
- Sensex closed 123 points higher at 82,515.14
Both the indices, however, failed to gain strong traction and were range-bound during the day.
Sensex Outlook
The Sensex created a Doji candle on the daily chart, generally an indicator of market indecision. The index will likely remain in a tight range between 82,000 and 82,700 in the short term, say analysts.
A break above 82,700 may trigger a rally to 83,000–83,300, but a fall below 82,000 may encourage more selling, dropping it to 81,700–81,500.
Nifty 50 Prediction
Although inching up, Nifty 50 still sees resistance around 25,200. Experts point out the development of a spinning top candle, which reflects indecision at higher levels
Technically, the trend is intact, but the index needs to hold above 25,200 to aim for the next resistance level around 25,600. Important supports are now 25,000, and lower at 24,800–24,970.
Some technicians also suggest overbought stochastics and pullback from the top Bollinger Band as indicators that a near-term dip is possible before the next move higher. A "buy on dips" approach could still be valid since the larger trend continues to be positive.
Bank Nifty View
Bank Nifty continued its weakness for the third session in succession, falling 169 points to close at 56,459.75.
The index came across selling pressure after a strong breakout from its 6-week range of 53,500–56,000. Still, the sentiment remains positive with analysts looking to move to 57,300, as long as the index remains above important support levels of 55,900 and 55,500.
One trend that was noted was the formation of "Three Black Crows" on the daily chart — a bearish sign indicating a possible pause or correction.
That being said, specialists think this is healthy consolidation, particularly as the index holds above important moving averages and the RSI still trends upwards. As long as 56,000–56,100 holds good, the uptrend should remain intact.
Final Take
With mixed global cues and local charts showing indecision, the traders need to be ready for a slightly negative to range-bound session. Still, since the underlying momentum is positive, dipping buying near important support levels may be an intelligent approach.
Note: Above all market views are those of independent analysts and brokerages. Approach a registered financial advisor prior to investment decisions.
