The Indian stock markets are expected to open on the lower end amid high oil prices and mixed global signals. GIFT Nifty also indicates a gap-down, with the index at 24,181, discounted by 183 points from its previous close of Nifty futures.
On Wednesday, the benchmark indices lost their three-day positive streak. The Sensex fell 756.84 points or 0.95% at 78,516.49, while the Nifty 50 declined 198.5 points or 0.81% at 24,378.10.advancing
The wider market indexes outperformed, with the Nifty Smallcap index advance 1.1% and the Nifty Midcap 100 adding 0.19%.
Brent crude futures regained $100 for the first time in over two weeks yesterday and currently trade at $101.76 a barrel. West Texas Intermediate futures (WTI) stand at 92.82.
The India VIX increased by 4.38% and indicates a mild rise in the market uncertainty.
Technically, the Sensex formed a bearish candle with a small lower shadow on the daily chart, which indicates indecision among traders.
The index has slipped below the immediate support zone of 77,800-78,000. This signals short-term weakness.
Initial resistance is seen around the 79,200-79,300 range; a break above these levels could take the index further toward 80,000.
The Nifty 50 also formed a bearish candle on the daily chart with a slightly longer upper shadow than the lower. This suggests selling pressure in the short term.
Osho Krishan, Chief Manager - Technical & Derivative Research at Angel One, called Wednesday's fall a 'pause', saying the market’s technical structure remains constructive, with the Nifty continuing to trade between its 50- and 100-day EMA on the daily chart.
"From a technical perspective, the confluence of the 50 per cent Fibonacci retracement level and the 50-day EMA in the 24,260-24,220 range is expected to provide a strong cushion to any declines. Additionally, the bullish gap between 24,100 and 23,900 is likely to act as a crucial support zone that reinforces the market’s underlying strength," he said.
On the upside, he points out multiple resistance zones around 24,600-24,660 that coincide with the 100-day EMA.
On Wednesday, Bank Nifty fell 247 points, or 0.43%, to settle at 57,124.45, forming a small bearish candle that traded within the previous session's range and signals consolidation.
Vaishali Patel, Senior Analyst at Jainam Broking, said, “The banking index remains structurally strong above the 56,700-56,800 zone, but immediate resistance is placed near 57,700-57,800, a notable gap area where supply is likely to emerge, as this level previously acted as a strong support zone on the daily chart. On the downside, key support is seen at 56,300-56,000, and a break below this zone could trigger further weakness.”
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