Post by : Raman

The Indian stock market is expected to open on a muted note on Tuesday, as investors remain cautious amid minor losses seen in Monday’s session. Both the Sensex and Nifty 50 showed small declines, reflecting a period of consolidation after recent gains. Traders are closely watching support and resistance levels, derivatives data, and technical signals for guidance on the day’s market direction.

On Monday, the Sensex fell 118.96 points, or 0.15%, to close at 81,785.74, while the Nifty 50 slipped 44.80 points, or 0.18%, to settle at 25,069.20. The modest decline indicates that the market is in a phase of indecision, with both bulls and bears testing key levels before a decisive trend emerges.

The trends on Gift Nifty also suggest a flat start for the domestic benchmark index. At the time of trading, Gift Nifty was around the 25,158 level, showing a slight discount of nearly six points from Nifty futures’ previous close.

Sensex Outlook

Analysts note that Sensex formed a small bearish candle on the daily chart, signaling indecisiveness in the market. Mayank Jain, Market Analyst at Share.Market, stated that the immediate support for Sensex lies at 81,500 and 81,400 points, while resistance is seen at 82,000 and 82,200 points. A move above resistance could restart the upward trend, whereas a break below support may test the 81,000 level.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, emphasized that intraday activity is non-directional, indicating a balance between buyers and sellers. He highlighted 81,750 and 81,500 as key support zones and 82,000 to 82,100 as resistance. According to Chouhan, a breakout above 82,100 could push Sensex to 82,400–82,500, while a drop below 81,500 may test the 50-day Simple Moving Average (SMA) near 81,200.

The technical patterns suggest that Sensex is currently in a consolidation phase, allowing traders to assess the next significant movement.

Nifty 50 Technical Analysis

Nifty 50 displayed a Tweezer Top candlestick pattern on Monday, a classic indicator of consolidation and short-term indecision. According to Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, the market is taking a breather after a continuous eight-day upward rally.

Shetti added that the near-term uptrend remains intact, and the current weakness can be considered a buy-on-dips opportunity. He identified 24,900 as immediate support and noted that a break above 25,150 could open the path for Nifty 50 to reach 25,400–25,500 levels.

Mayank Jain also confirmed that the resistance zone for Nifty 50 is between 25,200 and 25,250 points. Sustaining above this level could pave the way for further gains toward 25,500 points, while falling below 25,000 and 24,950 may trigger a correction toward 24,800 points.

Dr. Praveen Dwarakanath, Vice President of Hedged.in, highlighted that momentum indicators are in the overbought zone, suggesting potential weakness in the short term. He added that Nifty 50 came close to the upper Bollinger Band in smaller time frames and faced rejection, which could indicate temporary resistance.

Overall, Nifty 50 is expected to trade cautiously, with traders closely monitoring support and resistance zones for trading decisions.

Nifty Derivatives and Open Interest Data

Open interest (OI) data in the derivatives segment provides further insight into market positioning. Nifty call options have seen maximum writing at 25,100 and 25,200 strike prices, while put options are concentrated at 25,000.

Amruta Shinde, Technical and Derivative Analyst at Choice Equity Broking, noted that this positioning indicates strong resistance near 25,100. A decisive close above this resistance will be important to sustain bullish momentum in the near term. The derivatives data suggests that traders are cautiously optimistic, with market participants waiting for a clear breakout before committing heavily.

Bank Nifty Analysis

Bank Nifty closed 78.55 points higher at 54,887.85, forming a doji candle, which indicates indecision and consolidation near trend-line resistance. According to Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, the daily RSI remains in a neutral zone, signaling a lack of directional strength.

The 50-day EMA zone of 55,100–55,200 is a crucial hurdle for Bank Nifty, and any move above it could trigger a sharp rally toward 55,600–56,000. On the downside, the 20-day EMA zone of 54,600–54,700 serves as key support.

Om Mehra, Technical Research Analyst at SAMCO Securities, noted that Bank Nifty has sustained above the 9-EMA and 20-EMA, with the RSI reclaiming the neutral line. The MACD indicator has confirmed a bullish crossover with strengthening histogram bars. Mehra stated that the resistance stands at 55,300, with an upper Bollinger Band near 55,700, while 54,600 acts as immediate support.

Bank Nifty’s trend shows that the index is in recovery mode and may continue upward as long as it stays above 54,400. The index is likely to test the 55,300–55,400 zone in the short term.

Key Market Insights

The current market trends indicate cautious trading, with minor losses and indecisive candlestick patterns across indices. Traders are focusing on:

Sensex support at 81,500–81,400 and resistance at 82,000–82,200.

Nifty 50 support at 24,900–25,000 and resistance at 25,200–25,250.

Bank Nifty support at 54,600–54,700 and resistance at 55,300–55,700.

Derivatives data showing strong resistance around 25,100 in Nifty.

Momentum indicators signaling overbought conditions, suggesting potential short-term consolidation.

Overall, the market is in a consolidation phase, with traders carefully watching technical levels and derivatives positioning before making significant moves. Short-term traders may adopt buy-on-dips strategies, while investors look for a breakout above resistance to confirm further upside.

The Indian stock market is poised for a flat and cautious start today. Both Sensex and Nifty 50 are showing signs of consolidation after minor losses on Monday. Technical indicators, candlestick patterns, and derivatives data suggest that the market is indecisive, with bulls and bears testing key support and resistance zones.

Traders and investors should closely monitor critical levels in Sensex, Nifty 50, and Bank Nifty. A sustained breakout above resistance could trigger further gains, while falling below support may lead to correction or consolidation.

For now, the Indian stock market appears to be in a breather phase, allowing traders to analyze momentum, derivative positioning, and technical indicators before making significant moves. Market participants should stay alert, follow key technical levels, and be prepared for potential volatility in the near term.

The current market scenario emphasizes caution, observation, and technical discipline, making it a good opportunity for traders to plan their strategies carefully. With Nifty 50 and Sensex near crucial resistance, a clear breakout or correction will determine the market’s next direction.

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