Indian equity benchmarks are positioned for a robust opening on Thursday, mirroring upbeat global market sentiment triggered by a powerful rally in technology and artificial intelligence stocks following stellar earnings from chipmaker Nvidia.
Positive Global Signals and Domestic Momentum
The Gift Nifty, an early indicator of market performance, was trading near the 26,151 level, signaling a premium of nearly 80 points compared to the previous close of Nifty futures. This points towards a gap-up opening for the domestic market.
This optimistic setup follows a strong trading session on Wednesday, where the domestic market closed decisively higher. The Sensex surged 513.45 points, or 0.61%, to settle at 85,186.47. Meanwhile, the Nifty 50 climbed 142.60 points, or 0.55%, to close at 26,052.65, firmly reclaiming the psychologically significant 26,000 mark.
Technical Outlook and Expert Predictions for Sensex, Nifty
Market technicians are observing bullish patterns on the charts. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that the Sensex formed a bullish candle, supporting a continued uptrend. He identified 85,000 and 84,700 as key support zones. As long as the index trades above these levels, the bullish momentum is expected to persist. The immediate resistance is seen at 85,500, with a successful breakout potentially pushing the index towards 85,800 - 86,000.
For the Nifty 50, Nagaraj Shetti of HDFC Securities highlighted that the index has formed a bullish candle with a minor lower wick, indicating strong buying interest at lower levels. He stated that Wednesday's low of 25,856 could be considered a new higher bottom. A sustainable move upwards could open targets of 26,300 - 26,400 in the near term, with immediate support placed at 25,850.
Sudeep Shah from SBI Securities added that the Nifty is trading comfortably above its key short-term moving averages. The Relative Strength Index (RSI) reading of 64 indicates improving momentum and strengthening bullish sentiment. He pegs the 26,100 - 26,150 zone as a crucial resistance, with a break above potentially driving the index to 26,350.
Bank Nifty and Derivatives Data Analysis
The banking sector index, Bank Nifty, also ended higher, gaining 316.80 points, or 0.54%, to close at 59,216.05. According to Hrishikesh Yedve of Asit C. Mehta Investment Intermediates, the index shows strengthening momentum. Immediate support is near 58,580, while resistance is around 59,220. A sustained move above this resistance could drive the index toward the 59,500 – 59,700 zone.
Bajaj Broking Research noted that Bank Nifty continues to show relative strength compared to the Nifty, indicating sustained buying interest. They expect the index to retain its positive momentum and move towards the 59,800 level.
Analysis of derivatives data reveals a concentration of call writing at the 26,200 strike for Nifty, indicating overhead supply. Conversely, maximum put open interest is at the 26,000 strike, suggesting firm demand at lower levels. Amruta Shinde of Choice Equity Broking emphasized that a sustained close above 26,200 is crucial to reinforce bullish momentum for further upside.
