The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday, tracking weakness in global markets.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,360 level, a discount of nearly 60 points from the Nifty futures’ previous close.

On Tuesday, the domestic equity market ended sharply lower, with the benchmark Nifty 50 slipping below the 24,400 level.

The Sensex crashed 1,064.12 points, or 1.30%, to close at 80,684.45, while the Nifty 50 settled 332.25 points, or 1.35%, lower at 24,336.00.

Nifty 50 formed a long bear candle on the daily chart that has almost erased the gains made on Friday.

“Technically this market action is indicating a lack of strength to sustain the upside bounce. The positive chart pattern like higher tops and bottoms is still intact as per daily chart and the lower support of 24,200 – 24,000 is going to be crucial. If Nifty 50 manages to hold above 24,200 – 24,000 levels in the next few sessions, then there is a possibility of sizable upside bounce in the market,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, any failure to hold on a said support could possibly bring intense selling pressure in the market. Immediate resistance is at 24,500 levels.

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

Nifty OI Data

Nifty Open Interest (OI) data shows the highest OI on the call side at the 24,500 and 24,700 strike prices, signaling strong resistance levels. On the put side, OI is concentrated at the 24,200 and 24,000 strike prices, highlighting these as key support levels, said Hardik Matalia, Derivative Analyst at Choice Broking.

Nifty 50 Prediction

Nifty 50 slipped into a sharp weakness on December 17 and closed the day lower by 332 points.

“Nifty 50 closed below its 20 EMA (Exponential Moving Average) with yesterday’s fall of more than 1%. However, until the support for Nifty at 24,200 is intact, one can continue to buy on the dips with stoploss at the support at the 24,200 level. The immediate resistance for the index is at the 25,200 level. The RSI line has crossed below the RSI average line on the daily chart, indicating weakness in the index. The support at 24,200 is critical now, a break of which can take Nifty 50 towards the 23,800 level,” said Dr. Praveen Dwarakanath, Vice President of Hedged.in.

Options writer’s data for the monthly expiry showed increased writing of the calls at the 24,500 and above levels, suggesting weakness in the index, he added.

VLA Ambala, Co-Founder of Stock Market Today, noted that on the technical charts, Nifty 50 formed a bearish Marubozu candlestick pattern on the daily chart.

“According to the market analysis, Nifty might test the 23,990 level soon. In this situation, Nifty is expected to hover for support near 24,200 and 23,990, and notice resistance near 24,400 and 24,450. In this condition, I advise market participants to plan their strategy accordingly,” Ambala said.

Bank Nifty Prediction

Bank Nifty index plunged 746.55 points, or 1.39%, to close at 52,834.80 on Tuesday, forming a pattern resembling an evening star on the daily chart.

“Bank Nifty closed at the 20 EMA at the 52,800 level, a break that can take the index towards its immediate support at the 52,200 level. The RSI line has crossed below the RSI average line on the daily chart, indicating weakness in the index. The index is trading near the lower Keltner channel which can also act as a support for today,” said Dwarakanath.

According to him, options writer’s data for the monthly expiry showed increased writing of the calls at the 53,000 and higher levels, suggesting weakness in the index.

Om Mehra, Technical Analyst, SAMCO Securities highlighted that the Bank Nifty index slipped below the 9 EMA but held above the 40 and 50 EMA.

“The daily RSI, which had remained above the 60 level, has now dropped to 57, signalling a decline in bullish momentum. The support remains at 52,300, while resistance stands at 53,280, followed by 53,500. The short-term bullish trend appears to be losing steam, with a skew toward the downside accompanied by heightened volatility. In the broader timeframe, Nifty Bank may take a few sessions to stabilize and establish a base; however, holding above the critical 52,000 level remains crucial to prevent a deeper correction,” Mehra 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.