Indian stock market benchmarks Sensex and Nifty 50 are expected to open on a tepid note on Wednesday, tracking mixed global signals.

Trends on Gift Nifty also indicate a stable start for the Indian benchmark index. The Gift Nifty was trading around the 24,540 level, a discount of almost 7 points to the previous close of the Nifty futures contract.

Domestic equity benchmarks ended with healthy gains on Tuesday, extending their rise for the third consecutive session.

THE Sensex surged 597.67 points, or 0.74 percent, to close at 80,845.75, while the Nifty 50 settled 181.10 points, or 0.75 percent, higher at 24,457.15 .

Nifty 50 has formed a reasonable bullish candle on the daily chart, which indicates that the index is now placed on the verge of crossing the crucial hurdle of around 24,350 to 24,500 levels, which were the previous swing highs.

“The current bullish breakout could mean a possible negation of the downtrend of the last two months, such as lower highs and lower lows, according to the daily time chart. Therefore, the recent low of 23,873 (November 28) should be a new higher low. This market action indicates that bullish chart pattern like higher highs and higher lows are likely to unfold from here and this could possibly lead to more upsides for the market ahead,” Nagaraj Shetti said, Senior Technical Research Analyst at HDFC Securities.

According to him, the underlying trend of Clever 50 continues to be positive and a decisive move above 24,400-24,500 levels is likely to open the next rise to around 24,900-25,000 levels in the near term.

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

Clever RO data

The highest Nifty buying open interest was at the 24,800 and 25,000 levels, indicating significant resistance zones. Meanwhile, the highest open interest at 24,100 underlined a robust support level.

Nifty 50 Prediction

Nifty 50 continued to rise for the third consecutive session on December 3 and closed the day with another decent gain of 181 points.

“The 24,500 level is being closely watched as a critical pivot for further upside momentum. Sustained buying interest, coupled with favorable technical indicators, suggests an optimistic near-term outlook, with opportunities to accumulate positions on declines,” said Mandar Bhojane, research analyst at Choice Broking.

VLA Ambala, co-founder of Stock Market Today, noted that the Nifty 50 was forming a bullish hammer candlestick pattern above the 20, 50 and 200-day EMAs (exponential moving average).

“It’s a good bet to buy on dips, whether for intraday or swing trading. Investors should focus on mid- and small-cap stocks that have strong growth potential over the next 2-3 years. Amid these developments, the Nifty 50 may oscillate between 24,350 and 24,250, and resistance is expected to be around 24,560 and 24,700,” Ambala said.

Bank Nifty Prediction

The Bank Nifty index rose 586.75 points, or 1.13 per cent, to close at 52,695.75 on Tuesday, forming a bullish candlestick pattern on the daily time frame.

“Nifty Bank closed near its immediate resistance at the 52,800 level. The index is trading above its 20 and 50 EMA, indicating an uptrend. A break of the resistance could take the index towards the 53,500 level. The ADX DI+ line is sloping upwards with the picking momentum of the average ADX line, suggesting further upside from the current level. Momentum indicators on the daily chart also indicate a bullish trend,” said Dr. Praveen Dwarakanath, Vice President, Hedged.in.

Data from options writers for monthly expiration shows increased put writing at 52,500 levels and short covering of calls below 52,500 levels, indicating upward movement, it said. he added.

Om Mehra, technical analyst at SAMCO Securities, said the Bank Nifty index was forming a bullish candle, signaling sustained bullish momentum, potentially filling the gap towards 52,818.

“Notably, it climbed above the 61.8% Fibonacci retracement level at 52,680, positioning towards the next resistance at 53,000, followed by 53,450 at the 78.6% retracement level. A sustained uptrend is evident on the hourly chart, and the daily RSI remains stable around 60. Immediate support remains at 52,400, providing a cushion for any potential pullback. Mehra said.

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.