Due to positive signals from global markets, the Indian stock market indices Sensex and Nifty 50 are expected to open higher on Monday.

The trends in Gift Nifty also point to a positive start for the Indian benchmark index. The Gift Nifty was trading at around 24,915, a premium of almost 60 points over the previous close of the Nifty futures.

On Friday, the indices of the domestic stock markets closed unchanged with a positive trend.

The Sensex gained 33.02 points to close at 81,086.21, while the Nifty 50 closed 11.65 points or 0.05% higher at 24,823.15.

Nifty 50 formed a small negative candlestick at the highs on the daily chart, within a tight high-low range of around 90 points.

“This indicates a lackluster move in the market near the resistance. Nifty is currently at the hurdle of August 2 opening gap at around 24,850-24,950. Nifty formed a reasonable positive candlestick with minor shadow to the downside on the weekly chart. A significant downside resistance from the previous week on the weekly chart was completely filled at 24,700 and the market closed above it,” said Nagaraj Shetti, senior technical research analyst at HDFC Securities.

He believes that the underlying trend of Nifty 50 remains choppy with a positive bias and a further upside move from here could pull Nifty 50 towards 25,000-25,100 in the short term.

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

Nifty 50 Prediction

Nifty 50 continued the choppy move on August 23 and closed the day with minor gains amid a range-bound move.

“RSI is showing a bullish crossover and the trend remains positive as it closed above the 21 EMA (Exponential Moving Average). The market seems to be favouring a ‘buy on dips’ strategy as long as it remains above 24,650. On the upside, Nifty is facing resistance at 24,850 – 24,900/25,000,” said Rupak De, Senior Technical Analyst at LKP Securities.

However, he believes that the index could see a significant correction if it falls below 24,650.

Given the current situation, VLA Ambala, co-founder of Stock Market Today, advises market participants to avoid overbought stocks and focus on safe profits.

“While global market growth is gaining momentum, India remains the largest consumer market. Despite challenges like inflationary pressures and unemployment, the Indian market is likely to continue to attract global interest. Amidst these, Nifty can expect support levels at 24,760 and 24,700, while resistance in the next session could be around 24,890 and 24,965,” Ambala said.

Bank Nifty Forecast

Bank Nifty closed marginally 52 points lower at 50,933 on Friday, forming a bearish candlestick pattern on the daily charts.

“For Bank Nifty, the 20-day SMA or 50,700 would be the immediate reference point for the bulls. As long as it trades above it, the bullish sentiment is likely to continue. On the higher side, it could rise to the 50-day SMA or 51,500. It could also continue higher, which could take the index to 51,800,” said Amol Athawale, VP-Technical Research, Kotak Securities.

According to him, on the other hand, below 50,700, Bank Nifty could retest the 50,250-50,000 mark.

Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerage firms and not of Mint. We advise investors to seek advice from certified professionals before making any investment decision.