Nifty 50, Sensex today: What to expect from Indian stock market in trade on October 30

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

The trends on Gift Nifty also indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 24,435 level, a discount of nearly 40 points from the Nifty futures’ previous close.

On Tuesday, the domestic equity benchmark indices ended higher, with the Nifty 50 closing above 24,400 level.

The Sensex rallied 363.99 points to close at 80,369.03, while the Nifty 50 settled 127.70 points, or 0.52%, higher at 24,466.85.

Nifty 50 formed a bullish candle after forming a triple bottom in the 24,073 – 24,140 band.

“The momentum indicators on the daily chart are bouncing from the oversold region, however, the higher timeframes suggest weakness to continue in the index. The ADX DI- line is dropping down with the ADX average line sloping up on the daily chart, also indicating a further move upside till the resistance levels at 24,500,” said Dr. Praveen Dwarakanath, Vice President of Hedged.in.

According to him, Nifty options writer’s data for this month’s expiry showed increased writing of put at 24,500 and below and short covering in calls above 24,500, which could also be the reason for Tuesday’s bounce in the index.

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

Nifty 50 Prediction

Nifty 50 gained 127.70 points, or 0.52%, to close at 24,466.85, its highest in five sessions, on October 29.

“Nifty 50’s indicators are giving positive signals. The short term trend of Nifty 50 seems to have turned bullish. Nifty 50 could take support from the above band while on upmoves it can face resistance in the 24,567 – 24,694 band in the near term,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, observes that on the daily charts, Nifty 50 has found buying interest from support zone of 78.6% Fibonacci retracement level 24,170 and started the next leg of upmove.

“The upmove is likely to continue towards 24,563 – 24,823 which are the Fibonacci extension targets. The hourly momentum indicator has triggered a positive crossover and there is a high probability that the countertrend pullback rally which started can continue over the next few trading sessions,” Gedia said.

Nifty 50 has dipped 8.5% over the past month, and as per VLA Ambala, Co-Founder of Stock Market Today, a 10-15% dip could create fresh investments or averaging opportunities.

“Investors should focus on quality stocks, and monitor the situation in the Middle East to ensure preparedness. Amid these situations, Nifty could find support between 24,390 and 24,310 and face resistance between 24,540 and 24,740 in the next session,” Ambala said.

Bank Nifty Prediction

Bank Nifty outperformed the frontline indices and surged 1,061.40 points, or 2.07%, to close at 52,320.70 on Tuesday, forming a long bullish candlestick pattern on the daily timeframe.

“Bank Nifty formed a strong bullish candle on the daily, breaking the consolidation range of 51,000 – 52,000, and closed above the 52,000 level, owing to the rally in banking stocks. The RSI average line is crossed over the RSI line, indicating a further momentum in the index might come in the following sessions. The ADX DI+ line sloping up with the ADX DI- line sloping down, indicating the upside momentum to continue,” said Dwarakanath.

Bank Nifty Options writer’s data showed increased writing in puts below the 52,000 levels and short-covering in calls which could be the reason for yesterday’s rally 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.