Nifty 50, Sensex today: What to expect from Indian stock market in trade on July 31

Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a tepid note Wednesday tracking mixed global market cues.

The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading around 24,930 level, a discount of nearly 5 points from the Nifty futures’ previous close.

On Tuesday, the domestic equity market indices ended flat with a positive bias amid profit booking at higher levels.

The Sensex gained 99.56 points to close at 81,455.40, while the Nifty 50 settled 21.20 points, or 0.09%, higher at 24,857.30.

Nifty 50 formed a small positive candle on the daily chart with a long upper shadow.

“Technically, this pattern indicates a formation of a doji type candle pattern (not classical one). The long upper shadow signals the presence of a strong hurdle around the 25,000 mark. We observe narrow range movement (high low range of around 200 points) in the last two sessions with the smaller candles forming one after another. This formation could be considered as a minor distribution type pattern at the new highs. But, there is no sign of any significant reversal pattern developing at the highs,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He believes the short-term trend of Nifty continues to be choppy, but the near-term uptrend status remains intact. The overall chart pattern is signaling some more consolidation or minor dip in the next 1-2 sessions before bouncing back from the lows.

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

Nifty OI Data

Analyzing Nifty Open Interest (OI) data, Mandar Bhojane, Equity Research Analyst at Choice Broking noted that the highest OI on the call side was observed at the 25,000 and 25,500 strike prices, while on the put side, it was at the 24,500 strike price.

“The overall trend remains sideways to bullish, and the market is expected to remain highly volatile. Investors should hold their positions with a trailing stop-loss,” Bhojane said.

Nifty 50 Prediction

Nifty 50 index continued its lackluster movement on July 30 and closed the day higher by 21 points after witnessing selling pressure at higher levels.

“The Nifty oscillated between 24,800 and 25,000 before closing on a flat note. It seems that the bulls are taking a breather following a rally from 24,200. The trend remains positive, with Put writers putting their weight at 24,800. Buy-on-dips might remain the flavor of the market until the Nifty falls decisively below 24,700,” said Rupak De, Senior Technical Analyst, LKP Securities.

On the higher end, he believes a move above 25,000 might open the gate towards 25,250.

VLA Ambala, Co-Founder of Stock Market Today noted that the Nifty 50 formed a bearish Shooting Star candlestick pattern on the daily timeframe before it finished the day with a marginal gain.

“The RSI readings for the Nifty index were 70 for the daily, 77 for the weekly, and 81 for the monthly time frames, indicating high valuations on the upper frames. While this high valuation is a major concern for traders and investors, it is relatively moderate for those with medium to long-term views. As per analysis, now that we have reached the 25,000 mark, we can expect a slight pullback. In this case, the ‘sell-on-the-rise’ approach would be beneficial for market participants,” Ambala said.

According to her, in the next trading session, the Nifty index may gain support around 24,790 and 24,720 levels, and face some resistance between the 24,920 and 24,980 levels.

Bank Nifty Prediction

Bank Nifty index rose 93.05 points, or 0.18%, to close at 51,499.30 on Tuesday.

“Bank Nifty encountered selling pressure around its 21-day EMA (Exponential Moving Average) but managed to close above its rising channel breakout point. On the options front, active put writers at lower strike prices indicate strong support at the 51,200 level. Consequently, the view for Bank Nifty is range-bound, with support at 51,000 and resistance at 51,800 and 52,000 levels,” De said.

According to him, a decisive breakout of these levels will determine the future direction of Bank Nifty.

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.