The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a flat note Thursday, tracking mixed global market cues.

The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading around 24,745 level, a premium of nearly 10 points from the Nifty futures’ previous close.

On Wednesday, the domestic stock market benchmark indices ended with mild gains.

The Sensex rose 16.09 points to close at 81,526.14, while the Nifty 50 settled 31.75 points, or 0.13%, higher at 24,641.80.

Nifty 50 formed a small positive candle on the daily chart with minor upper shadow.

“Technically, this pattern indicates a continuation of range bound action in the market. Nifty sustained above the daily 10/20 period EMA (Exponential Moving Average) and the positive chart pattern like higher highs and lows is intact,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the short-term trend of Nifty 50 continues to be range bound and if Nifty 50 fails to break above the upper range of 24,700 – 24,800 levels in the next 1-2 sessions, then one may expect a small dip before bouncing back again from the higher lows.

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

Nifty OI Data

In the derivatives segment, Nifty open interest (OI) data revealed the highest call OI at the 24,800 and 25,000 strike prices, while the 24,500 and 24,000 strikes recorded the highest put OI, marking these as key levels to monitor, said Mandar Bhojane, Research Analyst at Choice Broking.

He advises market participants, including both long-term and short-term investors to accumulate quality stocks at lower levels or adopt a buy-on-dip strategy, with prudent risk management, to capitalize on potential long-term gains.

Nifty 50 Prediction

Nifty 50 continued the range bound action for the fourth consecutive session on December 11 and closed the day higher by 31 points.

“The trend remains supported by bullish hourly charts reflecting higher highs and higher lows. Nifty 50 sustains above the key support level of 24,500, while resistance remains around the 24,770 – 24,820 zone. Nifty holds above all key short-term moving averages, indicating sustained strength. The India VIX, the fear gauge, eased to 13.27, indicating controlled market volatility,” said Om Mehra, Technical Analyst, SAMCO Securities.

VLA Ambala, Co-Founder of Stock Market Today, noted that the Nifty index remained above the 24,500 level, with 23,980 serving as the key support level for the week. On the other hand, the Nifty traded sideways for four days in a row.

“In this situation, swing traders should consider buying on dips. Considering the current momentum, we expect Nifty to gain support between 24,600 and 23,530 and face resistance near 24,780 and 24,850 in today’s intraday session,” Ambala said.

According to Dr. Praveen Dwarakanath, Vice President of Hedged.in, Nifty 50 formed another doji candle well within the range of the last five day’s candles, indicating indecisiveness in the index.

“The momentum indicators continue to show bullishness in the index. The index is trading well above the 50-day SMA, indicating bullishness. The expansion of the outer Bollinger band also indicates bullishness in the index. Options writer’s data for the monthly expiry showed increased writing of the calls at the 24,800 level and increased writing in the ITM put of the 24,800 level, indicating bullishness in the index,” said Dwarakanath.

Bank Nifty Prediction

Bank Nifty registered a decline of 186.35 points, or 0.35%, and closed at 53,391.35 on Wednesday, forming a bearish candlestick pattern on the daily charts.

“Bank Nifty continued its consolidation within a range of 1,000 points between 53,800 and 52,800 levels for the last 5 days, suggesting indecisiveness in the index. The index is moving in an uptrend channel on the daily chart, indicating bullishness. The momentum indicators also show positive signs for the index from the current levels,” said Dwarakanath.

Options writer’s data for the monthly expiry showed increased writing of the calls and puts at the 53,500 level, indicating indecisiveness in the index, he added.

Om Mehra of SAMCO Securities highlighted that the Bank Nifty index managed to sustain above its crucial support at 53,300, signalling resilience despite the subdued movement.

“However, a decisive close above 53,650 is required to revive upward momentum and pave the way for further gains. A slight positive bias persists if Nifty Bank holds above key levels, keeping optimism intact,” he said.

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.