The Indian equity markets are poised for a cautious start on Tuesday, mirroring subdued cues from global markets. Early trends from Gift Nifty suggest a muted opening, trading around 24,083 – nearly 52 points lower than the previous Nifty futures close.
Despite the expected tepid start, the domestic indices closed Monday’s session on a strong note, extending their winning streak to five sessions. The BSE Sensex surged 855.30 points, or 1.09%, to settle at 79,408.50, while the NSE Nifty 50 advanced 273.90 points, or 1.15%, ending at 24,125.55. The Nifty 50 also formed a long bullish candle on the daily chart, indicating strong upward momentum.
Technical Outlook on Nifty 50
According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the breakout above the down-sloping trendline and prior swing highs near 23,850 confirms a bullish trajectory. He believes a sustained move above 24,200 could propel the Nifty 50 towards the next resistance level of 24,550, which corresponds to the 61.8% Fibonacci retracement of the September 2024 high to March 2025 low.
Om Mehra of SAMCO Securities echoed similar sentiments, noting that the index has successfully broken above a long-standing trendline resistance and continues to maintain higher highs and higher lows. Mehra stated that Nifty 50 may aim to hold above the immediate resistance at 24,250, with support now shifted upwards to 23,870. “A buy-on-dips strategy remains favorable as long as the index stays above 23,950,” he added.
Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates Ltd. highlighted a fresh breakout of a rounding bottom pattern, helping the index reclaim its 200-day SMA. He sees the next hurdle at 24,230, and a close above this level could open up targets in the range of 24,500 to 24,800.
Stock Market Today’s Co-Founder, VLA Ambala, expects the Nifty 50 to find support at 23,980, 23,900, and 23,830, with resistance projected between 24,250 and 24,370 in the short term.
Bank Nifty Outlook
The Bank Nifty also delivered a strong performance on Monday, jumping 1,014.30 points, or 1.87%, to close at 55,304.50. A bullish candlestick pattern signaled continuation of its strong uptrend, with the index breaching a 7-month consolidation range between 48,000 and 54,450.
Analysts at Bajaj Broking note that Bank Nifty‘s recent breakout and fast recovery from its five-month correction reflect renewed strength. They forecast a potential rally towards the 56,000 level in the near term, adding that any pullback should be seen as a buying opportunity, with the 54,000 – 53,500 zone acting as a solid support.
Meanwhile, SAMCO’s Om Mehra cautions that the daily RSI nearing the 75 mark suggests an overbought condition. “A trailing stop-loss strategy would be prudent to protect gains. The index remains in an uptrend as long as it holds above 54,250,” Mehra stated.
