The Indian stock market indices, namely Sensex and Nifty 50, are anticipated to commence trading on a subdued note this Monday. This is in line with mixed signals from global markets, as geopolitical tensions in the Middle East have heightened concerns.
Gift Nifty’s trends also suggest a lackluster start for the Indian benchmark index. Gift Nifty was hovering around the 19,648 level, compared to the previous close of Nifty futures at 19,688.
Over the weekend, conflict between Israel and Hamas escalated, adding to the prevailing uncertainty and potentially dampening market sentiment.
In the previous trading session, domestic benchmark indices closed with gains of over half a percent. This followed the Reserve Bank of India’s (RBI) decision to maintain the status quo on policy rates and stance. The Nifty 50 concluded at 19,653.50, advancing by 108 points, while the Sensex finished 364 points higher at 65,995.63.
On the daily chart, Nifty 50 formed a small positive candle with minor upper and lower shadows. Meanwhile, the weekly chart displayed a small bullish candle with a lengthy lower shadow. This suggests the formation of a bullish hammer-like candle pattern at the support of the 20-week exponential moving average (EMA). Furthermore, it has reclaimed the support of the 10-week EMA after briefly falling below it during the week, as noted by Nagaraj Shetti, Technical Research Analyst at HDFC Securities.
Shetti believes that the short-term trend for Nifty 50 has turned positive, and the overall favorable chart pattern indicates the next resistance level for Nifty around 19,800 in the upcoming week.
Here’s what to anticipate for Nifty 50 and Bank Nifty today:
Nifty 50 Despite selling in the banking sector, Nifty concluded the week with modest gains.
Overall, the sentiment is expected to remain positive as long as it stays above the critical support level of 19,500. This level is likely to be supported by put writers. On the upside, resistance is situated around 19,750-19,800, according to Rupak De, Senior Technical Analyst at LKP Securities.
He suggests that adopting a buying strategy on dips would be favorable as long as Nifty 50 maintains its position above 19,500.
Bank Nifty On October 6, the Bank Nifty index closed 147 points higher at 44,361 amidst market volatility.
Bank Nifty encountered challenges in reclaiming ground above the ascending trendline on the daily chart, signaling a bearish trend in the banking sector. Additionally, the index has consistently remained below crucial moving averages, reinforcing the bearish sentiment, as pointed out by Rupak De, Senior Technical Analyst at LKP Securities.
Looking ahead, a significant breakthrough above 44,550 could potentially drive the index towards 45,000 and beyond. However, support is located at 44,200 on the downside.
