Nifty 50, Sensex today: What to expect from Indian stock market in trade on September 18

Indian stock market indices, Sensex and Nifty 50, are likely to open on a flat note Wednesday tracking a mixed trend in global markets.

The trends on Gift Nifty also indicate a flat start for the Indian benchmark index. The Gift Nifty was trading around 25,455 level, a premium of nearly 5 points from the Nifty futures’ previous close.

On Tuesday, the domestic equity indices ended marginally higher ahead of the US Fed policy meeting.

The Sensex rose 90.88 points to close at 83,079.66, while the Nifty 50 settled 34.80 points, or 0.14%, higher at 25,418.55.

Nifty 50 formed a small candle on the daily chart with identical open and close.

“After the decisive upside breakout of 12th September, the current range bound action of the last few sessions could be an indication of a breather pattern and such actions more often results in an uptrend continuation,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, a sustainable upmove above 25,450 – 25,500 could open the next upside target of 25,800 in the near term.

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

Nifty 50 Prediction

Nifty 50 continued its narrow range movement for the last three sessions and closed on September 18 with minor gains above the 25,400 level.

“Nifty 50 continues to consolidate near its all-time high, where a trendline resistance is observed. A breakout from the recent range-bound pattern could provide a clear direction for the Nifty. Immediate support is at 25,350, and a fall below this level might lead to the unwinding of put option writing positions, potentially triggering a correction toward 25,000,” said Rupak De, Senior Technical Analyst, LKP Securities.

On the upside, he added, resistance is seen at 25,500, and a strong upward move may be expected if Nifty 50 breaks above this level.

VLA Ambala, Co-Founder of Stock Market Today noted that the domestic market is trading at an all-time high, and the price deviation from its 20-week EMA (Exponential Moving Average) is decreasing.

“The Nifty index is currently 5% away from its 20-week EMA and is likely to continue its upside movement as long as it stays above the 24,250 mark. The current RSI reading of 64 on the daily, 72 on the weekly, and 82 on the monthly timeframes indicates an overbought zone. However, I believe there is still room for gains. According to the prevailing conditions, Nifty may test its immediate support levels at 25,250 and 25,100 this week,” Ambala said.

Amid these developments, she suggests viewing hedging strategies with a neutral view for the next 20 days to avoid market fluctuations. Based on these situations, according to her, the Nifty 50 index could expect support levels around 25,380 and 25,300 and notice resistance between 25,480 and 25,550 in the next session.

Bank Nifty Prediction

Bank Nifty index ended marginally higher by 36 points at 52,189 on Tuesday, forming a bearish candlestick pattern on the daily charts.

“Bank Nifty index advanced steadily and is now holding above the previous resistance of 51,100. The index remains above the 61.8% Fibonacci retracement level. The 20 DMA has crossed above the 50 DMA, forming a bullish crossover, suggesting that the positive momentum will likely persist. The daily RSI is comfortably above the 60 mark, with support placed around 50,800,” said Om Mehra, Technical analyst, SAMCO Securities.

He believes any short-term correction towards 52,000, while maintaining these levels, would present a buying opportunity for the next session.

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.