The Indian stock market is expected to open on a positive note on Tuesday, with global cues providing a boost to indices like the Sensex and Nifty 50. Indicators from the Gift Nifty suggest a strong start, trading around the 25,990 mark, a premium of approximately 75 points compared to the previous close of Nifty futures.
Recent Market Performance
On Monday, both the Sensex and Nifty 50 hit record highs, each closing with gains of about half a percent. The Sensex rose by 384.30 points, closing at 84,928.61, while the Nifty 50 climbed 148.10 points, or 0.57%, to settle at 25,939.05.
The Nifty 50 formed a bullish candle on the daily chart, supported by a gap-up opening. This pattern indicates a continuation of the uptrend that followed a recent breakout, with no signs of a reversal or fatigue despite the index reaching new highs.
Technical Analysis and Predictions
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted that the short-term trend for Nifty 50 remains positive. He expects the index to head towards an upside target of 26,250, based on the 1.618% Fibonacci Extension, in the near term.
Rupak De, Senior Technical Analyst at LKP Securities, echoed this sentiment. He mentioned that the Nifty 50 may potentially rise to 26,200, with support likely around the 21-EMA on the hourly time frame, positioned at 25,700. The RSI has shown a breakout on the daily timeframe, further supporting the positive outlook.
VLA Ambala, Co-Founder of Stock Market Today, highlighted the strong RSI readings across various timeframes—74 on the daily, 75 on the weekly, and 83 on the monthly. He also pointed out the formation of a Marubozu candlestick pattern, which often signals continued bullish momentum. Ambala suggested cautious optimism, with potential support levels at 25,870 and 25,680, and resistance anticipated between 26,050 and 26,130 in the upcoming session.
Bank Nifty Performance and Forecast
The Bank Nifty index also reached a new lifetime high of 54,197.95 on Monday, ending with a gain of 312.60 points at 54,105.80. Chandan Taparia, Head of Equity Derivatives and Technicals at MOFSL, observed a small bullish candle on the daily scale, with a consistent pattern of higher lows over the past eight sessions. Taparia advised that as long as Bank Nifty holds above the 53,750 mark, it could see further gains towards 54,500 and even 55,000, with support shifting higher to 53,750 and 53,500 levels.
Summary
Overall, the outlook for Indian markets appears optimistic, with both Nifty 50 and Bank Nifty showing bullish trends. However, a cautious and well-hedged approach is recommended given the potential for volatility around key resistance and support levels.
