Nifty 50 and Bank Nifty Forecast: Full Details on Indian Stock Market Opening Higher Today, October 7, 2024
The Indian stock market indices, Sensex and Nifty 50, are set to open higher on Monday, October 7, 2024, following a tumultuous week marked by significant losses. This optimistic outlook is supported by recent gains in global equities, which have lifted market sentiment.
The trends observed in the Gift Nifty indicate a promising start for the Indian benchmark index, trading around the 25,250 level—approximately a 60-point premium over the previous close of Nifty futures. This development hints at potential recovery after the indices experienced five consecutive days of decline last week.
On Friday, October 4, the domestic equity benchmarks faced another wave of losses, with the Sensex dropping 808.65 points or 0.98%, closing at 81,688.45. Similarly, the Nifty 50 ended 235.50 points or 0.93% lower at 25,014.60. Analysts noted the formation of a bear candle on the daily chart for Nifty 50, characterized by a long upper shadow, reflecting ongoing selling pressure in the market.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, remarked that the market’s long upper shadows over the past three sessions suggest a “sell on rise” strategy. The Nifty 50’s performance indicates a sharp downturn, now resting on support around the 25,000 mark. Traders are advised to look for a minor upside bounce early this week, but the emphasis remains on selling opportunities.
A decisive move below the 25,000 to 24,950 levels could signal further declines, potentially targeting the 24,500 range in the near term, according to Shetti.
Nifty OI Data
Turning to options data, substantial Open Interest (OI) on the put side is evident at the 24,500 level, which is recognized as strong support. Conversely, significant OI concentrations at the 25,400 and 25,500 levels indicate these will serve as resistance zones moving forward. Mandar Bhojane, Technical Research Analyst at Choice Broking, advises traders to exercise caution, implement strict stop-loss measures, and refrain from maintaining long positions overnight to navigate the market’s inherent volatility.
Nifty 50 Prediction
The downward trend of Nifty 50 continued, experiencing high volatility as it dropped 235 points on October 4. The Nifty has displayed bearish tendencies, with sustained trading below crucial levels triggering corrections towards 25,000. Market sentiment is currently weak, with selling at higher levels prevalent. The next support level is anticipated at 24,750, while resistance is observed at 25,300.
VLA Ambala, Co-Founder of Stock Market Today, noted that Nifty 50 has declined nearly 5% over the past five trading sessions, presenting a bearish outlook. The index is currently in the overbought zone, with the RSI remaining above 80 on the monthly chart. However, the prices appear to be cooling off, prompting Ambala to recommend a “sell on rise” strategy until Nifty 50 approaches key support levels between 24,000 and 23,800.
Bank Nifty Prediction
In Friday’s trading, the Bank Nifty index fell by 383.15 points, or 0.74%, settling at 51,462.05. The bearish candlestick pattern formed during this session reflects the pressure on the banking sector.
Aditya Agarwal, Head of Derivatives & Technical Analysis at Sanctum Wealth, indicated that Bank Nifty briefly surpassed 52,000 levels during intraday trading but succumbed to a sharp selloff, primarily in private sector banks, before closing below 51,500. The short-term structure for Bank Nifty appears distorted, with potential declines toward 51,000 to 50,840 levels.
Dr. Praveen Dwarakanath, Vice President at Hedged.in, pointed out that Bank Nifty has found support around the 20 EMA (Exponential Moving Average) at 51,300 levels. While a bounce from these levels is anticipated, it may be short-lived, given that momentum indicators are in oversold territory.
As the week progresses, market participants will closely monitor these indices. The current trends in Nifty and Bank Nifty reflect the dynamic nature of the Indian stock market, influenced by both local and global factors. The upcoming trading sessions are expected to test traders’ strategies, emphasizing the importance of sound risk management practices in navigating market volatility.
