Indian stock market benchmarks are poised for a muted opening on Tuesday, defying the upbeat trend in global markets. The Gift Nifty, an early indicator of market sentiment, was trading around 25,983 points, showing a discount of nearly 13 points from Nifty futures' previous close.
Market Performance and Technical Outlook
On Monday, domestic equity markets witnessed significant selling pressure, with both major indices closing in negative territory. The Sensex dropped 331.21 points, or 0.39%, to settle at 84,900.71, while the Nifty 50 declined 108.65 points, or 0.42%, closing at 25,959.50.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, highlighted that Sensex formed a bearish candle on daily charts, indicating potential further weakness. "For day traders now, 85,000 would act as a trend decider level," Chouhan stated, adding that trading below this level could push the index toward 84,700-84,500, while movement above 85,000 might trigger a bounce back to 85,500-85,700.
Nifty 50 Analysis and Derivative Data
Nifty 50 technical patterns suggest increased selling pressure from near all-time highs. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted that "a long bear candle has formed on the daily chart," signaling potential short-term weakness with possible downward movement toward 25,700 levels.
Hitesh Tailor, Research Analyst at Choice Equity Broking, pointed to significant call writing at 26,000-26,100 strikes and put open interest buildup around 25,800-25,900, confirming supply pressure at higher levels and strong support at lower bands.
Technical experts identified crucial levels for Nifty 50:
- Resistance zone: 26,050-26,100
- Support levels: 25,800-25,750
- Critical 21-DMA support: 25,850
Bank Nifty Prediction and Trading Strategy
The banking index showed minimal movement on Monday, closing at 58,835.35 with a decline of just 32.35 points. The formation of a red candle with shadows on both sides reflected market uncertainty.
Hrishikesh Yedve of Asit C. Mehta Investment Intermediates Ltd emphasized that immediate support for Bank Nifty lies near 58,580, with sustained movement below this level potentially leading to further weakness toward 58,000-57,800. The 59,440 level remains a strong hurdle for upward movement.
Sudeep Shah from SBI Securities highlighted that Bank Nifty formed a high wave candle, indicating indecisiveness among market participants. "The 20-day EMA zone of 58,400-58,300 will act as critical support," Shah noted, adding that only a decisive breakout above 59,200-59,300 could revive bullish momentum in the banking space.
With the November series monthly F&O expiry approaching, analysts expect heightened volatility across all indices, advising traders to adopt level-based trading strategies and book profits during bounces.
