The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday, tracking mixed cues from global markets.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,720 level, a premium of nearly 80 points from the Nifty futures’ previous close.

On Tuesday, the domestic equity market ended lower amid profit booking, with the Nifty 50 closing below 24,600 level.

The Sensex crashed 1,281.68 points, or 1.55%, to close at 81,148.22, while the Nifty 50 settled 346.35 points, or 1.39%, lower at 24,578.35.

Here’s what to expect from Sensex, Nifty 50 and Bank Nifty today:

Sensex Prediction

Sensex formed a bearish candle on daily charts, which supports temporary weakness.

“The short term texture of the market is still on the positive side. For traders now, 81,000 and 80,800 would act as key support zones. If Sensex succeeds in trading above these levels, it could retest the level of 81,800 – 82,000. On the flip side, below 80,800, the uptrend would become vulnerable. If Sensex falls below this level, traders may prefer to exit their long positions,” said Shrikant Chouhan, Head-Equity Research, Kotak Securities.

Nifty 50 Prediction

Nifty 50 slipped into weakness subsequently on May 13 and closed the day lower by 346 points.

“A reasonable negative candle was formed on the daily chart that was placed beside the long bull candle of the previous session. The upside breakout of 12th May is still intact and the Nifty 50 is currently placed at the key lower supports of 24,600 – 24,500 levels (support as per change in polarity and the mid part of long bull candle of 12th May),” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the short-term uptrend remains intact and the Nifty 50 is expected to bounce back from near the crucial support of around 24,500 – 24,400 levels in the next few sessions. Immediate resistance is placed at 24,800 levels.

Om Mehra, Technical Research Analyst, SAMCO Securities noted that the Nifty 50 index formed a bearish harami pattern on the daily chart, typically indicating a pause in the ongoing bullish trend.

“Though the Nifty 50 still holds above all the short-term EMAs, the daily RSI has cooled off from 67 to 65, reflecting a healthy consolidation rather than any structural weakness. A key support level to watch is the middle band of the Bollinger Bands, positioned at 24,250 – 24,200, which could act as a cushion in case of further decline. The resistance is placed at 24,850, followed by 25,000. This corrective move may extend into the next trading session if it slips below 24,375,” Mehra said.

He believes while the broader trend remains positive, the current phase appears more to be a time correction or a short-term pullback.

Bajaj Broking Research said in a note that the Nifty 50 index formed a bear candle which remained enclosed inside previous session price range signaling profit booking at higher levels around 25,000 levels.

“We expect the Nifty 50 index to maintain positive bias and gradually head higher towards 25,200 – 25,300 levels in the near term, being the 78.6% retracement of the entire decline (26,277-21,744) and the measuring implication of the recent range breakout. On the downside, the Monday’s gap up area which also coincides with the key retracement area of the current pullback placed around 24,200 – 24,000 is likely to act as key support in the immediate short term,” said Bajaj Broking Research.

Bank Nifty Prediction

Bank Nifty ended 442.00 points, or 0.80%, lower at 54,940.85 on Tuesday, forming a small bear candle which remained enclosed inside previous session price range signaling profit booking at higher levels around 55,500 levels.

“The overall Bank Nifty structure is positive and dips should be used as a buying opportunity. We expect the index to head towards 56,400 levels in the short term, being the 123.6% external retracement of the recent breather (56,194 – 53,585). The daily stochastic has generated a buy signal highlighting strength and supports positive bias,” said Bajaj Broking Research.

According to the brokerage firm, key support for the short-term point of view is placed at 54,500 – 54,000 being the confluence of the Monday’s gap area and 20-day EMA.

Om Mehra highlighted that the Bank Nifty index trades above key moving averages, indicating that the broader uptrend remains intact.

“The recent correction can be attributed to a mean reversion, as the index faced resistance near the upper Bollinger Band on the daily chart. Nifty Bank is holding above the mean of a flag pattern on the daily chart, suggesting that the decline remains within a controlled range. The support is placed at the hourly Supertrend, around 54,550. The recent correction appears to be an ordinary consolidation phase rather than a change in trend,” Mehra said.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.