Nifty 50, Sensex today: What to expect from Indian stock market in trade on July 17

Mint

7 days ago

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat-to-positive on Thursday, tracking mixed global market cues.
The trends on Gift Nifty also indicate a mildly positive start for the Indian benchmark index. The Gift Nifty was trading around 25,275 level, a premium of nearly 30 points from the Nifty futures' previous close.
On Wednesday, the domestic equity market ended flat with a positive bias, with the benchmark Nifty 50 closing above 25,200 level.
The Sensex gained 63.57 points, or 0.08%, to close at 82,634.48, while the Nifty 50 settled 16.25 points, or 0.06%, higher at 25,212.05.
Here's what to expect from Sensex, Nifty 50 and Bank Nifty today:
Sensex formed a small candle on the daily charts and range-bound intraday activity, indicating indecisiveness between the bulls and bears.
'We believe that 82,300 will act as a key support zone for traders. As long as Sensex trades above this level, the bullish sentiment is likely to continue. On the higher side, the index could bounce back to the 20-day SMA (Simple Moving Average) or 83,000. Further upside may also push the index up to 83,600,' said Shrikant Chouhan, Head Equity Research, Kotak Securities.
Conversely, he believes, below 82,300, the sentiment could change, and if Sensex slips below this level, it could decline toward the 50-day SMA or the 82,000 - 81,800 zone.
In the derivatives segment, Nifty open interest (OI) data showed the highest call writing at the 25,300 and 25,400 strike prices, while the maximum put OI was concentrated at the 25,200 level.
'This positioning suggests strong resistance near the 25,500 zone. Nevertheless, the overall market sentiment remains cautiously optimistic, and a decisive close above this resistance level will be crucial to sustain the bullish momentum in the near term,' said Hardik Matalia, Derivative Analyst - Research at Choice Equity Broking.
Nifty 50 ended above the 25,200 level and formed a doji candle on the daily chart, indicating indecision in the market.
'A small green candle was formed on the daily chart with minor upper and lower shadow. Technically, this market action indicates a doji or high wave type candle pattern which signals a confusion state of mind among participants at the lower levels. This also signals a presence of volatility in the market,' said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying short-term trend of Nifty 50 remains positive, and a sustainable move above the immediate hurdle of 25,250 could pull Nifty 50 towards the next hurdle of 25,550 levels in the near term. Immediate support is placed at 25,000 levels.
Dr. Praveen Dwarakanath, Vice President of Hedged.in, noted that the Nifty 50 index is at its immediate resistance at the 25,200 level, a break of which can take the index towards the 25,500 level.
'The options writer's data shows similar puts and calls writing at the 25,200 level of the present week's expiry, indicating a range-bound move in the index. The ADX DI+ and ADX DI- lines are closing each other, also indicating a range-bound move in the index,' said Dwarakanath.
VLA Ambala, Co-Founder of Stock Market Today expects the Nifty 50 to gather support between 25,150 and 25,040, and face resistance near 25,400 and 25,320 in today's session.
Bank Nifty index continued to outperform the frontline indices and ended 162.30 points, or 0.28%, higher at 57,168.95 on Wednesday, forming a doji candle with shadows in either direction, signaling consolidation amid stock specific action.
'Bank Nifty is now trading comfortably above both its short-term and long-term moving averages, reinforcing its bullish undertone. Adding to the strength, the daily RSI is on the verge of crossing the 60 mark and remains in a rising trajectory — a positive sign for momentum traders,' said Sudeep Shah, Head - Technical and Derivatives Research, SBI Securities.
According to him, the zone of 57,400 - 57,500 will act as an immediate hurdle for the Bank Nifty index, while any sustainable move above the 57,500 level will lead to a sharp upside rally upto the level of 58,100, followed by 58,600 in the short term. While on the downside, the zone of 56,900 - 56,800 is likely to provide a cushion in case of any immediate decline.
Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates Ltd. noted that the Bank Nifty index formed a bullish engulfing candle on the daily chart, indicating strength.
'The short-term hurdle for Bank Nifty is placed in the 57,360 – 57,370 zone, while 21-DEMA is positioned near 56,775, which will act as immediate support. Short-term traders are advised to wait for a breakout above 57,370 to initiate the next round of upmove,' Yedve said.
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