Indian Stock Market Indices Set to Open on Weak Note Following Global Cues
The Indian stock market indices, Sensex and Nifty 50, are expected to start the week on a weak note as global market cues remain mixed. The Gift Nifty is indicating a gap-down start for the benchmark index, with trading around the 22,060 level, nearly 70 points lower than the Nifty futures’ previous close.
On Friday, both the Sensex and Nifty 50 closed over half a percent lower each due to profit booking. The Sensex slipped 0.62% to close at 72,643.43, while the Nifty 50 ended 123.30 points, or 0.56%, lower at 22,023.35.
Technical analysis suggests that the Nifty 50 is at a critical juncture, with the possibility of moving below the immediate support of 21,900 levels. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, highlighted the downside breakout of the daily 10/20 period EMA and ascending trend line, indicating resistance at the 22,150 – 22,200 levels.
The weekly chart for Nifty 50 also shows a bearish engulfing type candle pattern, with the index potentially moving below the strong support of the 20-week EMA around 21,915 levels. Shetti warned that a decisive move below 21,900 could lead to sharp weakness down to the next lower support of 21,500 levels in the near term.
Looking ahead, analysts predict that the Nifty 50 may find immediate support at the 50-DMA around 21,900, with resistance seen in the range of 22,200-22,250. Similarly, the Bank Nifty index is facing resistance at 47,000, with support at 46,500 – 46,300.
Investors are advised to stay cautious and seek advice from certified experts before making any investment decisions. The market outlook remains uncertain as global factors continue to influence trading patterns.
