Nifty 50, Sensex today: What to expect from Indian stock market in trade on September 16

Indian stock market indices, Sensex and Nifty 50, are likely to open higher on Monday tracking positive cues from global peers.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 25,435 level, a premium of nearly 62 points from the Nifty futures’ previous close.

On Friday, domestic equity market indices ended marginally lower amid profit booking at higher levels.

The Sensex eased 71.77 points to close at 82,890.94, while the Nifty 50 settled 32.40 points, or 0.13%, lower at 25,356.50.

Nifty 50 formed a small negative candle on the daily chart with minor lower shadow.

“Technically, such range movements soon after the sharp upmoves are considered as a breather pattern and they are considered as uptrend continuation patterns. Nifty on the weekly chart moved up and has engulfed the long bear candle of previous week, hence the bearish engulfing pattern of last week has been nullified. This is positive action and normally such negations of bearish pattern results in more upsides,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He believes the short-term trend of Nifty 50 continues to be positive and a sustainable move above 25,400 levels could pull Nifty towards the next upside of around 25,800 in the near term.

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

Nifty 50 Prediction

Nifty 50 consolidated on September 13 and closed the day lower by 32 points amidst choppy movement.

“On the higher end, Nifty 50 faced resistance at the rising trendline on the daily chart. On the lower timeframes, the RSI has entered a bearish crossover, signaling an early indication of a potential bearish momentum reversal. In the near term, the trend may remain sideways,” said Rupak De, Senior Technical Analyst at LKP Securities.

According to him, Nifty 50’s support is observed at 25,150 – 25,200, while resistance is seen at 25,460.

VLA Ambala, Co-Founder of Stock Market Today noted that Nifty’s RSI was trading above 82, a level that has been reached only twice in its price history. Historically, after such occurrences, we have observed severe selling pressure at benchmark levels, which led to a 40-55% decline in the next months. Currently, there are no signs of reversal. Regardless, we must remain vigilant.

“After reaching a fresh all-time high of 25,430.5, the benchmark index Nifty experienced a sideways trading day in the latest session. By the end of the day, it had closed below the previous day’s level and formed a ‘Hanging Man’ candlestick pattern on the daily timeframe,” Ambala said.

In this situation, according to Ambala, a closing level below 25,250 could trigger profit-taking in the index, while moving above the 25,530 mark may suggest the continuation of a fresh short-term rally.

“The broader market is being driven by liquidity from domestic institutional investors. Hence, I advise caution, especially when foreign institutional investors are playing the role of net sellers. Factoring in these observations, I expect the Nifty to gain support between 25,230 and 25,150 and meet resistance between 25,480 and 25,550 in the next session,” Ambala said.

Bank Nifty Prediction

Bank Nifty index outperformed the frontline indices on Friday and ended 165.65 points, or 0.32%, higher at 51,938.05.

“Bank Nifty continues to underperform with selective stocks performing well and hence any renewed breadth in banking stocks can push Bank Nifty higher. The resistance for Bank Nifty is at 52,200 – 52,300, above that, the resistance is placed at 53,000,” said Shrey Jain, Founder & CEO, SAS Online.

On the downside, Jain believes any dip to 51,600 – 51,400 will act as a strong support.

According to Praveen Dwarakanath, Vice President at Hedged.in, option writer’s data for the present week’s expiry and September end expiry shows increased call and put writing, indicating a halt at the present levels.

“Bank Nifty is trading on the upper Bollinger band with Thursday’s rally, however, could not continue its rally, indicating not a great strength in the index even after a rally. Although, on the daily chart, all momentum indicators are showing signs of a rally, the 52,000 level acts as a resistance for now. A breach of this level can take the index to its immediate resistance at 52,700 levels and 53,500 levels,” Dwarakanath said.

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.