The Indian stock market is likely to experience a lower opening today as indicated by early price action in the GIFT Nifty which is at 25944.5 (down 21pts vs. previous close of Nifty futures).
Indian domestic benchmarks closed lower yesterday extending the downtrend. The Sensex closed down 331.21pts or 0.39% at 84900.71 and the Nifty 50 closed down 108.65pts or 0.42% at 25959.50.
The Sensex candle formed on the daily chart is bearish and indicates selling pressure has continued; therefore, if the index can remain below 85000 (an important level for intraday direction), then the bearish tone of the market will probably continue and the Sensex may drift to 84700.
A decisive break above 85000 may provide a bounce for the Sensex toward 85500-85700; because of the indecisive nature of the current state of the indices it remains likely that the Sensex is going to remain in a volatile trading range.
The Nifty candle formed on the daily chart is bearish and selling has increased in the range at or near its all-time highs which is an indication that the Nifty may be in a trend reversal formation.
Analysts' consensus view is that the critical support for the Nifty is at 25700 and if it breaks below this price point in the upcoming sessions, the Nifty will probably move downward rapidly.
On the other hand, 26,200 is expected to act as a strong resistance. A decisive move above 26,180 could improve sentiment, but given the upcoming monthly expiry, market fluctuations within the 25,800-26,200 band are likely.
Nifty derivative data shows a clear change in how traders view the short term, with heavy call writing seen around the 26,000-26,100 range.
Bank Nifty ended Monday’s session at 58,835.35, falling 32.35 points, forming a candle with shadows on both sides indicates indecision among traders.
The immediate support is around 58,580, and a break below this level could take the index toward 58,000-57,800.
On the upside, the 59,200-59,300 range will remain significant resistance, and only a strong breakout above this range can revive positive momentum.
Also Read: US Stock Market Today: S&P 500 Rises 1.4% on Tech Rebound and Growing Optimism for December Rate Cut
Nifty Realty was the worst performer, falling over 2%, while sectors such as Metal, Consumer Durables, Oil & Gas, Healthcare, FMCG, Media, Financials, Private Banks, and Pharma also witnessed declines. PSU Banks held steady but lacked strong traction.
Nifty IT continues to be the only sector gaining ground and supporting the market. The broader market has been weakening, with Nifty Midcaps down 0.32% and Nifty Smallcaps down 0.85%.
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