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The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a muted note Friday, tracking mixed global market cues, despite optimism over the US-Iran peace talks.

The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 24,170 level, a discount of nearly 25 points from the Nifty futures’ previous close.

On Thursday, the Indian stock market ended lower, weighed down by profit booking at higher levels.

The Sensex dropped 122.56 points, or 0.16%, to close at 77,988.68, while the Nifty 50 settled 34.55 points, or 0.14%, lower at 24,196.75.

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

Sensex formed a small bearish candle on daily charts, which indicates indecisiveness between the bulls and the bears.

“We are of the view that the 78,500 - 78,700 zone would act as an immediate resistance for the bulls. As long as Sensex is trading below this, the correction formation is likely to continue. On the downside, the index could retest levels of 77,300 - 77,000. On the flip side, above 78,700, the chances of hitting 79,000 - 79,200 would increase,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

Nifty 50 index formed a bearish candle on the daily chart, after facing resistance around its 50-DMA near 24,400.

“A reasonable negative candle was formed on the daily chart after opening higher. Technically this market action signals presence of crucial overhead resistance at 24,415 (previous opening downside gap of 9th March). This indicates healthy market correction from the crucial overhead resistance,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the near-term uptrend of Nifty 50 remains intact and there is a possibility of further consolidation or minor dip in the next 1-2 sessions before bouncing back again.

“Immediate resistance to be watched at 24,415 and the key support is placed around 24,100 - 24,000 levels,” said Shetti.

Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse noted that the Nifty 50 index encountered resistance around its 50-DMA near 24,400 and formed a bearish candle on the daily chart.

“Despite this, the broader structure remains bullish, with immediate support placed at 24,000. A gradual upmove towards the 24,500 zone can be expected in the near term. The volatility index continued to ease, slipping close to the 18 level, and any further decline is likely to support bullish sentiment. Meanwhile, momentum indicators and oscillators continue to remain in buy mode on the daily chart,” said Jain.

Bank Nifty index ended 215.55 points, or 0.38%, lower at 56,086.40 on Thursday, forming a bearish candle on the daily chart with minor shadows on both sides, indicating a tussle between buyers and sellers and highlighting a phase of near-term indecision after the recent move.

“From a technical standpoint, the zone of 56,500 – 56,600 is likely to act as an immediate resistance for the Bank Nifty index. A sustained breakout above the 56,600 mark could provide fresh momentum and lead to an extension of the pullback towards 57,200, followed by the 57,700 levels in the short term. On the flip side, immediate support is placed in the 55,600 – 55,500 zone,” said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.

Bajaj Broking Research highlighted that the Bank Nifty index retraced more than 50% of its prior decline from 61,764 to 49,955. On the daily timeframe, the stochastic oscillator has moved close to overbought territory following a sharp rally of nearly 7,000 points over the past nine trading sessions.

“In light of this rapid upward movement, a phase of consolidation within the range of 57,000 to 54,000 cannot be ruled out in the near term. From a short-term perspective, support is placed in the range of 54,000 – 53,000 zone, which coincides with the confluence of the recent gap area and the 20-day EMA. Sustaining above this support band will keep the current pullback trend intact,” said the brokerage firm.

On the upside, a decisive close above 57,000 is likely to trigger further momentum, potentially leading the Bank Nifty index towards the 58,000 – 59,200 range. This zone represents a confluence of the 6th of March gap area and 78.2% retracement of the recent decline 61,764 to 49,955, it added.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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