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

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,520 level, a discount of nearly 40 points from the Nifty futures’ previous close.

On Wednesday, the domestic equity benchmark indices ended marginally higher, with Nifty 50 closing above the 24,450 level.

The Sensex rose 0.14% to close at 80,956.33, while the Nifty 50 settled 10.30 points, or 0.04%, higher at 24,467.45.

Nifty 50 formed a small red candle on the daily chart with minor upper and lower shadow.

“Technically, this market action indicates a formation of high wave type candle pattern at the highs and this reflects ongoing volatility in the market. Normally, such high wave type candle formation after a reasonable upmove or at the hurdle sometimes results in impending reversal of trend after the confirmation. Having placed near the crucial resistance, the Nifty was unable to gather strength to witness a decisive upside breakout,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He believes bullish chart pattern like higher highs and lows is intact on the daily chart and any dips from here could be a buying opportunity.

“The near-term trend of Nifty 50 continues to be positive. Having not been able to surpass the resistance zone sharply above 24,500 levels, there is a possibility of some more consolidation or minor dip in the next 1-2 sessions before showing next round of upmove,” Shetti added.

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

Nifty OI Data

In the derivatives market, Nifty open interest (OI) data showed the highest call OI at 24,500 and 24,600, suggesting strong resistance at these levels. Conversely, the highest put OI was at the 24,300 strike, highlighting robust support.

A decisive break above the 24,500 level could drive further gains in the sessions ahead, said Mandar Bhojane, Research Analyst at Choice Broking.

Nifty 50 Prediction

Nifty 50 shifted into a consolidation on December 4 amidst volatility and closed the day higher by 10 points.

“Nifty 50 index managed to close above the crucial level of 24,420. On the downside, support is placed at 24,350, while on the upside, it could move toward 24,700, where it may encounter initial selling pressure. A decisive move above 24,700 could trigger a continuation of its upward momentum. Conversely, a fall below 24,350 could weaken market sentiment,” said Rupak De, Senior Technical Analyst, LKP Securities.

VLA Ambala, Co-Founder of Stock Market Today, highlighted that the Nifty 50 touched the 24,500 level and formed a Doji candlestick pattern on the daily chart, signaling a positive outlook for medium- and long-term investors.

“I suggest investors grab this opportunity to accumulate small-cap and mid-cap stocks. Analysis says that Nifty could expect support near 24,480 and 24,300, while resistance can be found near 24,730 and 24,800,” Ambala said.

According to Dr. Praveen Dwarakanath, Vice President of Hedged.in, Nifty 50 again got rejected at its resistance of 24,500 levels, a break of this resistance can take the index towards the 24,800 levels.

“The index took support from its 50 EMA (Exponential Moving Average) at the 24,350 level and bounced during the day, indicating further bullishness at the current level. The index formed a spinning top candle, a bullish candle for today will confirm the move upside while a bearish candle will indicate further fall towards the support at the 24,100 level,” said Dwarakanath.

Options writer’s data for the monthly expiry showed an increase in writing of the calls and put at the 24,500 level, indicating a range-bound move near the resistance level, he added.

Bank Nifty Prediction

Bank Nifty index surged 571.15 points, or 1.08%, to close at 53,266.90 on Wednesday and formed a strong bullish candlestick on the daily chart.

“Bank Nifty is moving closer to its immediate resistance at the 53,500 level. The index is likely to react from the resistance as the momentum indicators on the daily chart are near the oversold region. The ADX DI+ line is sloping up with the ADX average line picking momentum, suggesting further upside from the current level until a reaction from the resistance at the 53,500 level,” said Dwarakanath.

Option writer’s data for the monthly expiry show increased writing in puts at 53,500 and below levels and short covering of calls below 53,000 levels, indicating bullishness on the upside, he added.

Om Mehra, Technical Analyst, SAMCO Securities noted that the Bank Nifty index has moved above the 61.8% Fibonacci retracement level and is now 1,200 points away from its 52-week high (54,467.35).

“The daily RSI remains robust, hovering comfortably above 60. The short-term moving averages (SMAs) have risen above the medium-term SMAs, resulting in multiple positive crossovers that support the bullish outlook. However, consolidation cannot be ruled out as the index might absorb recent gains and any short-term pullbacks may provide opportunities to buy into the ongoing uptrend,” Mehra said.

According to him, the immediate support remains at 52,850, which is likely to act as a cushion against minor corrections while the resistance is placed at 53,550, followed by 53,800.

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.