The Indian stock market is expected to open lower on Wednesday, following mixed cues from global markets. The Sensex and Nifty 50, India's benchmark indices, are likely to decline due to weak global market trends.
On Tuesday, the Sensex declined 436.41 points, or 0.51%, to close at 84,666.28, while the Nifty 50 settled 120.90 points, or 0.47%, lower at 25,839.65. The Bank Nifty index fell 16.20 points, or 0.03%, to close at 59,222.35.
According to Shrikant Chouhan, Head Equity Research, Kotak Securities, the Sensex is holding a lower high formation on daily and intraday charts, which supports further weakness from the current levels. He believes that the pullback rally may extend in the near future, with 84,400 acting as a key support zone.
The Nifty 50 formed a Doji-like candle on the daily chart, indicating indecision among traders. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, believes that the underlying trend of Nifty 50 remains weak, and any sustainable bounce back from near the crucial support of 25,700 could open more upside towards 26,100 - 26,200 levels in the near term.
The Bank Nifty index is expected to trade above its key medium-term averages, keeping the broader uptrend intact as long as support at 58,800 – 58,700 holds. Ponmudi R, CEO of Enrich Money, believes that a break below this band could deepen the correction toward 58,300 – 58,000.
Investors are advised to check with certified experts before making any investment decisions. The views and recommendations made above are those of individual analysts or broking companies, and not of the publisher.
Download the TradeKaizen app to practice F&O trading with real-time market data anytime, anywhere.
Get it on Google PlayConnect with fellow traders, share strategies, and improve your trading skills in our Telegram group.
Join Telegram