The Indian stock market benchmark indices, Senex and Nifty 50, are likely to open lower on Wednesday tracking weak global market cues.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 23,895 level, a discount of nearly 65 points from the Nifty futures’ previous close.

On Tuesday, the domestic equity market indices extended fall for the fourth consecutive session, with the Nifty 50 slipping below 23,900.

The Sensex crashed 820.97 points, or 1.03%, to close at 78,675.18, while the Nifty 50 settled 257.85 points, or 1.07%, lower at 23,883.45.

Nifty 50 formed a long negative candle on the daily chart, that is placed near the recent swing low of 4 November around 23,816 levels.

“Technically, this pattern indicates lack of strength in the market to sustain the upside bounce. A slide below the key lower support of 23,800 is expected to open more weakness in the short term. Negative chart pattern like lower tops and bottoms is intact on the daily chart. Having declined from the new lower top of 24,537 levels, the odds of new lower bottom formation is likely below 23,800 levels in coming sessions,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the short-term trend of Nifty 50 continues to be weak and a slide below 23,800 levels could open the next downside target of around 23,500 levels (200-day EMA) in the near term.

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

Nifty 50 Prediction

Nifty 50 witnessed sharp fall on Tuesday and closed the day lower by 257 points.

“Nifty 50 index has recently formed a bearish pattern on the daily timeframe, followed by the previous session’s upper price rejection. Amid these bearish trends, a ‘sell on rise’ approach could be more suitable. Considering these, Nifty is likely to find support around 23,760 and 23,510 and face resistance around 23,980 and 24,060 in today’s session,” said VLA Ambala, Co-Founder of Stock Market Today.

Dr. Praveen Dwarakanath, Vice President of Hedged.in noted that Nifty 50 continued its fall from its resistance at 24,500 levels.

“The momentum indicators on a weekly and daily chart continue to show a further fall in the index. The index has closed very near its critical support at the 23,800 level. A close above the support can trigger short covering in the 24,000 puts of November-end expiry, making the index fall quickly towards 23,500 and then to 23,000 levels,” said Dwarakanath.

Options writer’s data for the present week’s expiry showed increased writing in calls above the 24,000 level, indicating the index is likely to close below this level for today’s expiry, he added.

Bank Nifty Prediction

Bank Nifty index plunged 718.95 points, or 1.39%, to close at 51,157.80 on Tuesday, forming a large bearish candle on the daily charts.

“Bank Nifty has fallen back to its support at 51,000 levels. The index has been sold-off on every bounce towards 52,000 levels. A breach of the 51,000 level, can trigger a further fall towards 50,400 levels. The momentum indicators in the lower time frame are in the oversold region, which can bring in a small bounce, which can be an opportunity to sell the index near its resistance,” said Dr. Dwarakanath.

Options writer’s data of today’s expiry showed increased writing in the calls of 51,500 and above levels, indicating the index likely to close below the 51,500 level today.

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.