Nifty 50, Sensex today: What to expect from Indian stock market in trade on July 12

The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open on a cautious note on Friday tracking losses in global peers.

The trends on Gift Nifty indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,460 level, a premium of nearly 50 points from the Nifty futures’ previous close.

On Thursday, the domestic equity indices ended flat, with the Nifty 50 holding above 24,300 level.

The Sensex fell 27.43 points to close at 79,897.34, while the Nifty 50 settled 8.50 points, or 0.03%, lower at 24,315.95.

Nifty 50 formed a small negative candle on the daily chart with lower shadow.

“The formation of lower shadows back-to-back in the last couple of sessions indicates crucial support around 24,200 - 24,100 levels. Normally, such formations during consolidations more often result in a decisive upside breakout of the range. This is a positive indication,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the immediate support of the 10-day EMA is intact and the market has been sustaining above this moving average support in the last one month. Having bounced back from this support in two sessions, the odds of upside bounce is likely in the short term.

“The underlying trend of Nifty remains choppy with positive bias. A sustainable move above 24,500 levels is expected to open the next upside targets of 24,900 levels in the near term. Immediate support is at 24,150,” Shetti said.

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

Nifty OI Data

Analysing the Nifty Open Interest (OI) data, Mandar Bhojane, Research Analyst at Choice Broking noted that on the call side, the highest OI was observed at the 24,800 and 25,000 strike prices, while on the put side, the highest OI was at the 24,000 strike price.

Nifty 50 Prediction

Nifty 50 index shifted into an upside bounce from the lows on July 11 and closed the day lower by 08 points.

“In the near term, the Nifty might trade sideways, with 24,150 and 24,400 acting as the key levels. A decisive fall below 24,150 might trigger panic in the market, while a decisive move above 24,400 might induce a rally towards 24,650,” said Rupak De, Senior Technical Analyst, LKP Securities.

VLA Ambala, Co-Founder of Stock Market Today noted that Nifty’s RSI reading shows 69 on the daily, 74 on the weekly, and 79 on the monthly timeframes, indicating overbought conditions. In this case, the ‘sell-on-the’ strategy can be effective at least for the next 2-3 days.

“However, looking ahead, the trend could remain bullish over the next 6-9 months but I advise following a cautious approach to navigate the risks for the short term. According to option OI data the benchmark index holds key support at 24,300 and resistance at 24,500. Considering these aspects Nifty is expected to find support between 24,310 and 24,120, and face resistance in the range of 24,480 and 24,530, in the next session,” Ambala said.

Bank Nifty Prediction

Bank Nifty index ended 81 points higher at 52,271 on Thursday, forming a small-bodied bearish candlestick pattern with a long lower shadow on the daily charts.

“The Bank Nifty index is trading near a crucial support zone of 52,000-51,800. If it manages to hold this level, it could witness a pullback rally towards 52,500. A sustained move above 52,500 will open up the gates for 53,000. However, if it fails to hold the support at 51,800, it could decline further towards the 51,300-51,000 zone,” De said.

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.