Nifty 50, Sensex today: What to expect from Indian stock market in trade on October 9 ahead of RBI policy | Stock Market News

Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday tracking gains in global markets and ahead of the RBI policy announcement.

The trends on Gift Nifty also indicate a flat-to-positive start for the Indian benchmark index. The Gift Nifty was trading around 25,145 level, a premium of nearly 15 points from the Nifty futures’ previous close.

The Reserve Bank of India (RBI) will announce its monetary policy today. The RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) is widely expected to keep the repo rate unchanged, but may change its policy stance.

On Tuesday, the domestic equity benchmark indices ended higher after six sessions of heavy losses.

The Sensex jumped 584.81 points, or 0.72%, to close at 81,634.81, while the Nifty 50 settled 217.40 points, or 0.88%, higher at 25,013.15.

Nifty 50 formed a long bull candle on the daily chart, which is indicating that the market is on the verge of showing upside bounce.

“We observe Nifty 50 in the process of forming a double bottom type pattern around 24,700 levels, which needs to be confirmed with more upside. The previous bullish pattern of higher tops and bottoms has been negated by Nifty 50 slipping below the swing low of last higher bottom at 24,753 of 9th September 2024 on Monday. Hence, the present upside bounce could be short lived,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

Shetti believes Tuesday’s upmove could be a cheering factor for the bulls to make a comeback and further sustainable upside from here could confirm the near term bottom reversal pattern.

“A decisive move above 25,000 levels could possibly open the next upside resistance of 25,400 – 25,500 in the near term,” said Shetti.

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

Nifty 50 OI Data

In terms of Nifty open interest (OI), Mandar Bhojane, Technical analyst at Choice Broking noted that the highest call-side OI was at the 25,200 and 25,500 strike prices, while the highest put-side OI was concentrated at the 24,800 strike price, suggesting strong support around the 24,000 level for the Nifty.

Nifty 50 Prediction

Nifty 50 witnessed a sustainable upside bounce on October 8 and closed the day higher by 217 points, forming a bullish harami pattern on the daily timeframe, indicating rising optimism.

“Nifty has seen the dead cat bounce which was expected from its low of 24800. However, it is yet to close above the previous day’s high, indicating the weakness to continue. The momentum indicators have recovered from the oversold region, however, the ADX average line is still showing weakness to continue. One can take a further bullish view in Nifty 50 only on a close above 25,300 levels, until then the index can be sold on the rise,” said Dr. Praveen Dwarakanath, Vice President of Hedged.in.

Options writer’s data showed a significant increase in call writing at 25,000 levels even in this bounce showing weakness to continue in the index, he added.

Aditya Agarwal, Head of Derivatives & Technical Analysis at Sanctum Wealth expects the short covering move to extend more from current levels and on the higher side Nifty 50 can test 25,200 / 25,350 levels. On the lower side, the index will continue to find strong support around 24,850 / 24,750 levels.

According to VLA Ambala, Co-Founder of Stock Market Today, Nifty 50 could trade between the 25,450 and 24,360 range in the next 3-4 trading sessions.

“However, short- and medium-term investors tracking the benchmark index should note that the Nifty RSI is at 75, suggesting overbought conditions. Hence, I recommend investors take tailored measures for each stock. They should focus on those with strong ROE, outstanding order books, and a PE ratio equal to or lower than the sector average. However, my analysis suggests that investors should avoid thematic investments for now,” Ambala said.

After analyzing the market, Ambala expects the Nifty 50 index to find support levels around 24,880 and 24,670, while resistance levels near 25,230 and 25,350 in today’s session.

Bank Nifty Prediction

Bank Nifty index saw a short covering pullback and rallied by 542.10 points, or 1.07%, to close at 51,021.00 on Tuesday.

“Bank Nifty bounced from its support of 51,300 levels, however, it is not able to close above its previous high, indicating weakness to continue. A close above 51,850 levels, can only be an indication of a reversal in the trend, until then the index status is to be taken as sell on the rise,” said Dr. Praveen Dwarakanath.

Options writer’s data showed an increased call writing at 51,000 levels in the weekly expiry, indicating the index to likely close below 51,000 levels today, he added.

Read RBI Monetary Policy Live Updates here 

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.