Indian stock market will see a good start on Wednesday, March 26, as the Sensex and Nifty 50 are expected to open in the green, after receiving positive cues from overseas markets. The Gift Nifty trends suggest a positive opening, with the index being in the range of the 23,758 level, a 53 points premium over the last closing of Nifty futures.
On Tuesday, the local equity market closed on an upbeat
note, recording its seventh straight session of gains but at high volatility.
The Sensex rose by 32.81 points, or 0.04%, and closed at 78,017.19, while the
Nifty 50 rose by 10.30 points, or 0.04%, closing at 23,668.65.
Sensex Outlook: Cautious Optimism Amid Profit Booking
The Sensex saw some profit booking at higher levels on Tuesday, closing with small gains and creating a 'shooting star' candlestick pattern on the daily chart. This indicates potential weakness at present levels, analysts say.
Even so, experts are bullish on the short-term market
outlook. "The market is witnessing some profit booking following a strong
rally, but the short-term trend is still positive. For day traders, 77,700 will
be the critical support level. If the Sensex stays above this level, it may
retest the band of 78,300 to 78,500. On the negative side, a break below 77,700
can change market sentiment, with possible support around 77,300 to
77,200," said Shrikant Chouhan, Head of Equity Research at Kotak
Securities.
Nifty 50: Buying Opportunity or Consolidation?
The Nifty 50 weakened at higher levels on Tuesday,
closing with small gains after it could not hold on to the momentum above
23,800. The index had a small red candle with both upper and lower shadows on
the daily chart, reflecting selling pressure at the resistance level.
But experts are of the view that the near-term upmove is
intact, and any short-term fall could be a buying opportunity. "The
ongoing consolidation is not likely to hurt the underlying bullish trend. The
immediate support is at 23,400. A breakout above 23,900 could take the index
further to 24,200," said Nagaraj Shetti, Senior Technical Research Analyst
at HDFC Securities.
Bank Nifty: Profit Booking Amid Resistance
Bank Nifty, which closed lower by 97 points at 51,607.95
on Tuesday, encountered profit taking at the resistance level of 52,000. The
index had a red candle on the daily chart, indicating weakness. But analysts
remain bullish as long as the index remains above the crucial 200-Days Simple
Moving Average (200-DSMA) level of 50,980.
"Bank Nifty has tested resistance close to the
52,000 level. As long as it holds above 50,980, a 'buy on dips' strategy must
be followed," Hrishikesh Yedve, AVP Technical and Derivatives Research at
Asit C. Mehta Investment Intermediates Ltd., said.
Critical Levels to Monitor
For Nifty 50, support is likely at 23,650 to 23,580, with resistance around 23,870 to 24,000, feels VLA Ambala, Co-Founder of Stock Market Today.
In case of Bank Nifty, 52,000 remains a significant barrier, and 50,980 is seen as a significant support level.
As market players prepare for yet another tumultuous
trading day, investors are recommended to be prudent and take advice from
experts before taking any trading decisions.
Disclaimer:
The views and predictions mentioned are based on technical analysis and expert
opinions. Investors are advised to consult certified professionals before
making any investment decisions.
