Indian stock market benchmarks Senex and Nifty 50 are expected to open lower on Wednesday, tracking weak signals from the global market.

Trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around the 23,895 level, a discount of almost 65 points to the previous close of Nifty futures.

On Tuesday, domestic stock market indices extended their decline for the fourth consecutive session, with the Nifty 50 slipping below 23,900.

THE Sensex crashed 820.97 points, or 1.03%, to close at 78,675.18, while the Nifty 50 settled at 257.85 points, or 1.07%, down at 23,883 .45.

Nifty 50 formed a long negative candle on the daily chart, which is placed near the recent low of November 4 around 23,816 levels.

“Technically, this trend indicates a lack of strength in the market to support the bullish rebound. A slide below key lower support at 23,800 should open up more near-term weakness. The negative chart pattern, such as lower highs and lower lows, is intact on the daily chart. After declining from the new lower high of 24,537 levels, the chances of formation of a new lower low are likely lower at 23,800 levels in the coming sessions,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the short-term trend of Clever 50 continues to be weak and a slide below 23,800 levels could open the next downside target of around 23,500 levels (200 day EMA) in the near term.

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

Nifty 50 Prediction

Nifty 50 saw a sharp decline on Tuesday and closed the day down 257 points.

“The Nifty 50 index recently formed a downtrend on the daily time frame, followed by the rejection of higher prices from the previous session. Amid these bearish trends, a “selling up” approach might be more suitable. Given this, Nifty is likely to find support around 23,760 and 23,510 and face resistance around 23,980 and 24,060 during today’s session,” VLA Ambala said, co-founder of Stock Market Today.

Dr. Praveen Dwarakanath, Vice President, Hedged.in noted that Nifty 50 continued its fall from its resistance at 24,500 levels.

“Momentum indicators on the weekly and daily charts continue to show a further decline in the index. The index closed very close to its critical support at the 23,800 level. A close above the support can trigger short covering in the 24,000 puts at expiration in late November, sending the index falling quickly towards 23,500 and then around 23,000 levels,” Dwarakanath said.

Options writers data for the current week’s expiration showed an increase in call writes above the 24,000 level, indicating that the index is likely to close below this level for today’s expiration, he added.

Bank Nifty Prediction

The Bank Nifty index plunged 718.95 points, or 1.39 per cent, to close at 51,157.80 on Tuesday, forming a large bearish candle on the daily charts.

“Nifty Bank fell back to its support at the 51,000 levels. The index was sold off with each rebound towards the 52,000 levels. A breakout of the 51,000 level may trigger a further fall towards the 50,400 levels. Short momentum indicators term are in the oversold region, which may result in a slight bounce, which may be an opportunity to sell the index near its resistance,” said Dr. Dwarakanath.

Options Writer data on today’s expiration showed an increase in call writing from levels of 51,500 and above, indicating that the index is likely to close below the level from 51,500 today.

Disclaimer: The opinions and recommendations stated above are those of individual analysts or brokerage firms, and not of Mint. We advise investors to consult certified experts before making any investment decisions.