Nifty 50, Sensex today: What to expect from Indian stock market in trade on July 3

Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open in the green on Wednesday following positive trends in the global markets.

The trends on Gift Nifty also indicate a strong start for the Indian benchmark index. The Gift Nifty was trading around 24,335 level, a premium of nearly 135 points from the Nifty futures’ previous close.

On Tuesday, the domestic equity indices ended with minor losses amid profit booking at record high levels hit during the session.

The Sensex eased 34.74 points to close at 79,441.45, while the Nifty 50 settled 18.10 points, or 0.07%, lower at 24,123.85.

Nifty 50 formed a small negative candle on the daily chart at the new highs, which is indicating a lackluster type movement in the market.

“This pattern also signals tiredness in the market at the new highs. The overall trend of Nifty remains positive. Further consolidation or minor dips from here could be a buying opportunity, as per the bullish pattern of higher tops and bottoms,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He believes Nifty as per long term chart remains strong and one may expect upside momentum to resume shortly after the consolidation movement.

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

Nifty

Strong call writing was observed at the 24,200 strike in Nifty, which acted as a strong resistance for Nifty on Intraday basis. The put writers further strengthened their position at the 24,000 Strike in Nifty, which is likely to act as strong support in the near term, said Ashwin Ramani, Derivatives & Technical Analyst, SAMCO Securities.

The call writers (2.09 lakh contracts) lead the put writers (76K contracts) at the 24,200 strike and the option activity at this strike will provide cues about Nifty’s future direction, he added.

Rahul Ghose, CEO of Hedged.in is of the view that the increased writing of the call OI at 24,200 levels, indicates index has strong resistance at 24,200 for this week expiry. The PCR traded highly volatile, opened at 1.09 and dropped to test 0.91 levels, indicating the index is losing momentum on the upside in the first week of July series.

Bank Nifty

All Bank Nifty strikes from 52,300 until 52,900 saw put writers (Bulls) exiting and call writing, which led the strong down move in the Bank Nifty on Tuesday, Ramani said. The put writers (1.79 lakh contracts) lead the call writers (62K contracts) marginally at the 52,000 Strike and the option activity at this strike will provide cues about Bank Nifty’s upcoming direction.

According to Ghose, the increased writing of the call OI at 52,300 levels and short covering of the put OI at 52,600 levels, indicates Bank Nifty likely to face resistance in this zone 52,300 - 52,600 in the first week of July series.

“The Bank Nifty PCR opened at 0.86 levels and dropped to 0.64 levels in the second half of the session, indicating the index has fading momentum in the resistance zone, however at lower levels 51,700 - 52,000 levels value buying may emerge. Market participants must exercise extreme caution & hedge their portfolio to lock the value,” Ghose said.

Nifty 50 Prediction

Nifty 50 shifted into a choppy movement at the new highs on July 2 and closed the day lower by 18 points.

“The sentiment is likely to favor selling on rallies until it moves above 24,250. On the lower end, 24,000 is likely to act as immediate support for the Nifty. A fall below 24,000 might trigger a correction towards 23,850 / 23,700,” said Rupak De, Senior Technical Analyst, LKP Securities.

VLA Ambala, Co-Founder of Stock Market Today (SMT) believes the overall trend remains bullish, and any dip from the current levels should be considered as a buying opportunity for short and mid-term investors. Considering the current spot chart, option traders must hedge their positions.

According to Ambala, for Nifty, support levels for the next session are expected between 24,080 and 23,950, and resistance between 24,250 and 24,330 levels.

Bank Nifty Prediction

Bank Nifty index ended Wednesday’s session 406 points, or 0.77, lower at 52,168, forming a bearish engulfing pattern on the daily time frame.

“The Bank Nifty index witnessed selling pressure from higher levels and faced rejection at the 52,400 - 52,500 levels. The index remains in a sell-on-rise mode with the next immediate support at the 52,000 - 51,800 zone. If the index fails to hold this support, it can witness further selling pressure towards the 51,400 - 51,300 level,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

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.