The Indian stock market indices Nifty 50 and Sensex today are expected to open lower tracking weak global cues.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 19,462 level as compared to the Nifty futures’ previous close of 19,484.
On Monday, the domestic equity indices extended rally for the third consecutive session amid improved investors’ risk appetite fueled by hopes of an imminent end to interest rate hike cycle and the likelihood of earlier-than-expected rate cuts.
The 30-share BSE Sensex ended 594.91 points higher at 64,958.69, while the NSE Nifty 50 rallied 181.15 points, or 0.94%, to close at 19,411.75.
The Nifty 50 index formed a reasonable bull candle on the daily chart with minor upper and lower shadow. The opening upside gap of the last three sessions remains intact.
“This market action signals a decisive upside bounce in the market after the formation of an important bottom reversal at 18,837 levels on 26th October. The immediate resistance of 18,250 has been taken out sharply on the upside on Monday and the market is now advancing towards the next overhead resistance of around 19,550-19,600 levels in the short term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty Call/Put Option Data
As per the Nifty Open Interest Data, on the call side, the highest OI observed at 19,500 followed by 19,600 strike prices. On the put side, the highest OI is at 19,300 strike price, according to Deven Mehata, Research Analyst, Choice Broking.
Nifty 50
The Nifty maintained a positive trajectory throughout the day and closed higher for the third straight session on November 6.
“On the upper side, the rally encountered resistance at the 21-day moving average (21DMA). It is anticipated that the trend will continue to move sideways in the near term. A decisive breakthrough above 19,450 points could potentially pave the way for a Nifty rally,” said Rupak De, Senior Technical analyst at LKP Securities.
On the lower end, support is situated at 19,300 points, he added.
Bank Nifty
The Bank Nifty index rallied 301 points and ended at 43,619 on November 6.
“On the higher side, the index closed above the 21-day moving average (21DMA). The trend is expected to remain sideways to positive in the near term. Support on the lower end is located at 43,300 points. On the higher end, a move above 43,700 points could trigger a rally towards 44,500 points,” De said.
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Updated: 07 Nov 2023, 07:04 AM IST