Indian stock market benchmarks Sensex and Nifty 50 are expected to open lower on Thursday, following a sharp decline in global markets after the US Federal Reserve’s policy.

Trends on Gift Nifty also indicate a downward start for the Indian benchmark index. The Gift Nifty was trading around the 23,936 level, a discount of almost 320 points to the previous close of Nifty futures.

THE The US Fed cuts interest rates of 25 basis points in the range of 4.25% to 4.50%, but indicates a slower pace of rate reduction next year.

On Wednesday, domestic stock market indices ended down over half a percent, with the Nifty 50 closing below the 24,200 level.

THE Sensex plunged 502.25 points, or 0.62 per cent, to close at 80,182.20, while the Nifty 50 settled 137.15 points, or 0.56 per cent, lower at 24,198.85 .

Nifty 50 has formed a reasonable negative candle on the daily chart with an upper shadow, which indicates a sharp reversal in the market after the bullish bounce.

“The weakness of the last three sessions has shifted market sentiment to the downside and the bullish chart pattern, like higher highs and higher lows, is on the verge of negating itself. This is not a good sign. The short-term trend of Clever 50 appears to have reversed,” said Nagaraj Shetti, senior technical research analyst at HDFC Securities.

According to him, the next lower supports will be worth watching around 24,000 – 23,900 (opening of the bullish gap of November 25) in the short term, while the immediate resistance lies at the levels of 24,350 – 24,400.

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

Nifty 50 Prediction

Nifty 50 continued its strong bearish momentum for the third consecutive session on December 18 and closed the day down 137 points.

“The Nifty 50 traded below its 20 EMA (Exponential Moving Average), suggesting weakness in the index. The index tested its crucial support at the 24,200 level and held it yesterday in the fall. However, support seems weak at the moment. The index will likely move towards its next support at the 23,800 level as soon as the support at 24,200 is broken. The RSI on the weekly chart shows a breakdown in momentum, indicating that the weakness in the index will continue,” said Dr. Praveen Dwarakanath, Vice President, Hedged.in.

Options writers data for the monthly expiration showed increased call writing at the 24,200 levels and above, suggesting weakness in the index, it added.

VLA Ambala, co-founder of Stock Market Today, highlighted that the Nifty 50 is currently trading near 24,200 points, showing a positive price gap of 7% above the 20 EMA (exponential moving average). month.

“With an RSI of 69 on the monthly chart, market participants can expect further downsides, representing a strategic buying opportunity. The immediate support level for Nifty is 23,990, which is the fundamental level. If breached, this could trigger a 5% to 7% price movement over the next 30 days. Meanwhile, during Wednesday’s session, Nifty formed a bearish trend on the daily chart and ended on a negative note, continuing the latest price trend,” Ambala said.

According to her, the Nifty 50 can expect support around 24,200 and 24,000, while resistance is near 24,305 and 24,430.

Bank Nifty Prediction

The Bank Nifty index fell 695.25 points, or 1.32 per cent, to close at 52,139.55 on Wednesday and formed a long bearish candlestick pattern on the daily time frame.

“Nifty Bank closed below the 20 EMA at the 52,800 level near its crucial support at the 52,200 level. The RSI on the weekly chart shows a breakdown in momentum, indicating that the weakness in the index will continue. The index is moving on the lower band of the lower Keltner channel, indicating the potential for further decline,” said Dr. Praveen Dwarakanath.

According to him, data from options writers for monthly expiration showed an increase in call option writing at the levels of 52,200 and above, suggesting weakness in the index.

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.