Nifty 50, Sensex today: What to expect from Indian stock market in trade on July 26

Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat amid mixed cues from global peers.

The trends on Gift Nifty also indicate a flat-to-positive start for the Indian benchmark index. The Gift Nifty was trading around 24,490 level, a premium of nearly 30 points from the Nifty futures’ previous close.

On Thursday, the domestic equity indices ended with minor losses, extending its losing streak for the fifth consecutive session.

The Sensex fell 109.08 points to close at 80,039.80, while the Nifty 50 settled 7.40 points, or 0.03%, lower at 24,406.10.

Nifty 50 formed a long bull candle at the lows on the daily chart on Thursday, which is indicating a possible comeback of bulls from the lower levels.

“Technically, this candle pattern signals a formation of a bullish counterattack type pattern (not a classical one). The lack of selling pressure despite the weak global market is signaling a chance of an upside bounce from here onwards. The crucial 20 day EMA (Exponential Moving Average) has been held after violating below it on Thursday. Nifty has been trading above this moving average since the past 5-6 weeks. This is a positive indication,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He believes the short term trend of Nifty continues to be choppy and expects the lackluster movement with weak bias to continue for the next 1-2 sessions, before witnessing a sharp upside bounce from the lows.

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

Nifty 50 Prediction

Nifty 50 shifted into an intraday upside recovery after early part weakness on July 25 and closed the day with minor loss of 07 points. Despite the eventful month, the Nifty July contract closed with a 1.50% gain.

“The Nifty slipped in the initial trades but recovered almost the entire loss during the day. On the lower end, the index found support at the upper band of the rising channel. Also, on a closing basis, the Nifty managed to hold above the 21 EMA. The trend for the short term is likely to remain sideways as long as it remains within the bands of 24,200 and 24,600. The momentum might continue to remain sideways until there is a breakout on either side,” said Rupak De, Senior Technical Analyst, LKP Securities.

According to him, a decisive fall below 24,200 might trigger a serious correction and on the higher end, a sustained move above 24,600 might induce a fresh leg of the rally in the market.

Rajesh Bhosale, Technical Analyst, Angel One is of the view that Nifty appears to be in a time-wise correction phase, with 24200 - 24100 acting as a base and if breached, it could trigger a severe price correction.

“On the upside, 24500 - 24600 remains a key resistance zone, beyond which optimism may return for index traders. Until then, traders should adopt a buy-on-dip, sell-on-rise strategy, keeping these levels in mind,” Bhosale said.

VLA Ambala, Co-Founder of Stock Market Today noted that Nifty 50 formed a bullish candle pattern on the daily timeframe, at its 20-day EMA, which acts as a dip-buying opportunity in an uptrend.

“It is expected that the index valuation will cool off soon, creating more buying opportunities. Looking at market conditions, the Nifty is likely to find support between 24,350 and 25,230 and meet resistance between 24,480 and 24,580 in the next session,” Ambala said.

Bank Nifty Prediction

Bank Nifty index declined 428.25 points, or 0.83%, to close at 50,888.75 on Thursday.

“The Bank Nifty index continued to exhibit weakness. The index closed below the 50 EMA as well as below the upper band of the wedge, suggesting a weakening trend. The sentiment looks negative for the short term. Traders are advised to use any rise in the index as an opportunity to sell,” De said.

The immediate support level is Thursday's low at 50,500 / 50,200, while resistance is situated at 51,200 / 51,500, he added.

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.