Nifty 50, Sensex today: What to expect from Indian stock market in trade on January 8

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday following weakness in global markets.

The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 23,770 level, a discount of nearly 25 points from the Nifty futures’ previous close.

On Tuesday, the domestic equity market ended higher amid positive global cues, with the benchmark Nifty 50 ending closing above 23,700.

The Sensex gained 234.12 points, or 0.30%, to close at 78,199.11, while the Nifty 50 settled 91.85 points, or 0.39%, higher at 23,707.90.

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

“Technically, this market action signals an attempt of upside bounce in the market after a sharp weakness. Nifty 50 moved above the crucial 200-day EMA (Exponential Moving Average) at 23,700 levels on Tuesday. The short term trend of Nifty 50 continues to be weak. However, the upside bounce of Tuesday could be a slight positive factor for the bulls to come back again,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, immediate resistance is at 23,800 and the upside breakout of this hurdle could open further upside for the short term, while immediate support is at 23,460.

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

Nifty 50 Prediction

Nifty 50 showed a reasonable upside bounce on January 7 and closed the day higher by 91 points.

“Nifty 50 formed an inside bar candle on the daily chart, closing near the 23,700 mark. However, market sentiment remains cautious. A breach below the 23,600 level could lead to further corrections towards 23,400 and 23,000, identified as immediate support levels. On the upside, resistance is pegged at 23,800 and 24,000,” said Mandar Bhojane, Research Analyst at Choice Broking.

Technical indicators presented mixed signals. The RSI at 43 suggested bearish momentum, while the Stochastic RSI showed a bullish crossover, hinting at a possible short-term recovery. This divergence underlines the importance of vigilance, as the market lacks a definitive directional bias, he added.

As the market approaches critical support and resistance levels, he advises investors to monitor price action closely and adopt a cautious stance in the coming sessions.

VLA Ambala, Co-Founder of Stock Market Today, is of the view that the overall market continues to present bearish momentum, creating opportunities for value buyers in undervalued companies.

“As per technical charts, Nifty 50 could gain support near 23,570, 23,400, or 23,270 and meet resistance near 23,830 and 23,890 in today’s session,” Ambala said.

Bank Nifty Prediction

Bank Nifty index ended 280.15 points, or 0.56%, lower at 50,202.15 on Tuesday, forming an Inside Bar candlestick pattern on the daily timeframe.

“Bank Nifty index bounced from its critical support at the 50,000 level, a break of which can make the index fall toward the 49,000 level soon. Tuesday’s bounce can be used as a sell on the rise in smaller time frames. The index has an immediate resistance at the 50,500 level, unless this is taken off, one can look to sell the index on every bounce,” said Dr. Praveen Dwarakanath, Vice President of Hedged.in.

The ADX average line is moving sideways, which indicates no clear trend in the index. Options writer’s data for the monthly expiry showed increased writing of the puts at the 50,000 level and calls at the 51,000 level, suggesting a rangebound move in the index, 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.