Post by : Raman

The Indian stock market is showing signs of optimism as the benchmark indices, Sensex and Nifty 50, are expected to open higher on Friday. This positive outlook is driven by strong global market cues and a steady trend in the derivatives market. Investors are keeping a close watch on key technical levels, as momentum indicators suggest a cautiously bullish sentiment for the day.

On Thursday, the market closed on a positive note. The Sensex rose by 123.58 points, or 0.15 percent, to settle at 81,548.73. The Nifty 50 gained 32.40 points, or 0.13 percent, closing at 25,005.50. The upward trend indicates that investors are gradually regaining confidence, reflecting a positive start for Friday’s trading session.

Sensex Outlook

Technical analysts believe that the Sensex is currently consolidating, forming a small candle on daily charts. Shrikant Chouhan, Head of Equity Research at Kotak Securities, said that for day traders, the 50-day Simple Moving Average (SMA) at 81,200 would act as crucial support. "As long as Sensex stays above this level, bullish sentiment is likely to continue. On the higher side, 81,700 is the immediate breakout zone. A successful breakout above this could push the index to 82,000-82,200," he explained.

However, he cautioned that any dip below 81,200 could make the uptrend vulnerable. Overall, the Sensex is maintaining strength in a range-bound manner, reflecting a mix of investor optimism and caution.

Nifty 50 Outlook

The Nifty 50 also showed a positive trend on Thursday, crossing key trendline resistance and forming a bullish candle. Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted that while Nifty 50 is placed near the 25,000 mark, it has not shown decisive strength to break out fully. "The underlying trend remains positive, but if the index fails to move sharply above 25,000-25,100 in the next couple of sessions, short-term weakness may emerge," he added.

Technical indicators and derivatives data suggest cautious optimism. The highest put open interest was at the 25,000 strike, indicating strong support, while the 25,500 strike showed heavy call open interest, marking a resistance level. Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities, explained that the Put-Call Ratio (PCR) rising to 1.15 points to bullish undertones and potential for upward momentum.

Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking Ltd, said that bullish crossovers in momentum indicators support the positive structure of Nifty 50. "We expect upward momentum to continue, with immediate targets at 25,200 and 25,400. The 50-day moving average, now near 24,900, continues to provide strong support," he noted.

Dr. Praveen Dwarakanath, Vice President at Hedged.in, observed that Nifty 50 formed an insider candle with a bullish bias, and the upcoming high-profile meeting between PM Modi and US President Donald Trump could provide additional impetus for the index to breach resistance levels at 25,150 and move toward 25,500.

Bank Nifty Outlook

Bank Nifty also closed higher on Thursday, rising 133.60 points, or 0.24 percent, to 54,669.60. The index formed a bullish engulfing pattern on the daily chart, indicating continued strength.

Sudeep Shah, Head of Technical Research at SBI Securities, explained that the 100-day EMA zone between 54,800 and 54,900 is the immediate hurdle for Bank Nifty. "A sustainable move above 54,900 can lead to a rally up to 55,400. On the downside, the 54,400-54,300 zone will provide crucial support," he said.

Hrishikesh Yedve, AVP Technical and Derivative Research at Asit C. Mehta Investment Intermediates Ltd, noted that the next resistance zone for Bank Nifty lies near 54,900-55,000, while strong support exists around the 200-DEMA at 53,620. He advised traders to adopt a buy-on-dips approach for short-term opportunities.

Key Takeaways for Investors

• Sensex support: 81,200; immediate resistance: 81,700.

• Nifty 50 support: 24,800; immediate resistance: 25,150-25,500.

• Bank Nifty support: 54,400-54,300; resistance: 54,900-55,400.

• Derivatives data shows cautious optimism with bullish undertones reflected in PCR and open interest.

Overall, the Indian stock market is positioned for a positive opening, supported by both global cues and technical indicators. Investors are advised to watch key support and resistance levels closely while maintaining a cautious approach amid choppy trading conditions. The trends in Sensex, Nifty 50, and Bank Nifty indicate a market ready for moderate gains, with upward momentum likely to continue if resistance levels are breached in the near term.

The current market scenario emphasizes the importance of following technical analysis, monitoring derivative activity, and keeping an eye on macroeconomic and geopolitical developments that could impact investor sentiment.

Indian stock market, Sensex, Nifty 50, Bank Nifty, market prediction, stock trends, trading outlook