In response to subpar global market indications, the key Indian stock market indexes, the Sensex and Nifty 50, are probably going to open lower on Wednesday.
The Indian benchmark index is off to a bad start, according to Gift Nifty's statistics. The Gift Nifty was trading at a discount of around 40 points from the previous closing of the Nifty futures, at 24,410.
Following the Lok Sabha's presentation of the Union Budget 2024 on Tuesday, the domestic market indexes saw a slight decline in closing prices.
The Nifty 50 closed 30.20 points, or 0.12%, down at 24,479.05. The Sensex dropped 73.04 points, or 0.09%, to conclude at 80,429.04. On the daily chart, Nifty 50 created a little, bearish candle with a long lower shadow.
Technically speaking, this pattern shows the creation of a bullish hammer-type candle pattern, which denotes a bullish effort to rally from the lower levels. A sustained upward trend from this point might validate a short-term upward reversal pattern. The market kept rising above the 10- and 20-day daily EMAs. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, "Nifty has been sustaining above these moving averages for the past five to six weeks and has formed a few minor bottom reversals around these supports in the past."
He thinks the Nifty50's short-term trend is still bearish and quite volatile. Tuesday's positive candle pattern and the emergence of strong purchasing are indicating that a bullish reversal pattern is likely to occur in the upcoming sessions.
In the short term, Shetti believes that a sustained rise over 24,650–24,700 might lead to the next upswing above 24,850–24,900 levels.
What to anticipate from Bank Nifty and Nifty 50 today is as follows:
Nifty 50 Forecast
On July 23, the day of the Union Budget 2024, Nifty 50 saw significant volatility and ended the day down 30 points.
On budget day, the Nifty was extremely erratic as traders changed their positions in response to the announcements of the budget. A pattern like a hammer has developed on the daily chart. However, the RSI is making a bearish crossover as it leaves the overbought area. Immediate support is positioned at 24,400 on the bottom end. Immediate support is positioned at 24,400 on the bottom end. According to Rupak De, Senior Technical Analyst at LKP Securities, "heavy call writing at 24,500 indicates that the selling pressure will remain prevalent in the market until Nifty decisively breaches above 24,500."
He thinks that a decline below 24,400 may, on the lower end, lead to a correction towards 24,200–24,000.
Forecast for the Bank Nifty
The Bank Nifty index finished Tuesday at 51,778.30, down 502.10 points, or 0.96%.
"Weakness in the market caused a correction in the Bank Nifty index during the day. A deteriorating trend was also indicated by the index falling below the 21-day exponential moving average. Short-term sentiment may continue to be negative or until the index is below 52,100, according to De.
According to him, resistance is located between 52,100 and 52,550 on the higher end, while Bank Nifty may go towards 51,200–51,000 on the lower end.
