Nifty 50, Sensex today: What to expect from Indian stock market in trade on February 4 | Stock Market News

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Tuesday, tracking gains in Asian markets.

The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 23,543 level, a premium of nearly 101 points from the Nifty futures’ previous close.

On Monday, the domestic equity market ended lower, with the Nifty 50 falling below 23,400.

The Sensex dropped 319.22 points, or 0.41%, to close at 77,186.74, while the Nifty 50 settled 121.10 points, or 0.52%, lower at 23,361.05.

Nifty 50 formed a bullish hammer candle on the daily chart, signaling a potential reversal in sentiment.

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

Sensex Prediction

Sensex declined 319.22 points, or 0.41%, to close at 77,186.74 on Monday.

“Technically, in the backdrop of weak global sentiment, the Indian stock market opened with a gap-down but found support near the 20-day SMA (Simple Moving Average) and reversed. We believe that the current market texture is volatile and non-directional; hence, level-based trading would be the ideal strategy,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

According to him, for day traders, the 20-day SMA, along with support levels of 77,000 and 76,800, would act as key support zones for Sensex, while resistance areas for the bulls are around 77,500 and 77,800. However, if Sensex dips below 76,800, it may retest the levels of 76,500.

Nifty OI Data

In the derivatives market, Nifty open interest (OI) data showed the highest OI on the call side at the 23,500 and 23,600 strike prices, while the put side saw the highest OI at the 23,300 strike price, said Hardik Matalia, Derivative analyst at Choice Broking.

This suggests that Nifty 50 is facing resistance near 23,500, with traders positioning for further gains if the index sustains above this key level, he added.

Nifty 50 Prediction

Nifty 50 slipped into weakness amidst range movement on February 3 and closed the day lower by 121 points.

“Nifty 50 formed a small green candle on the daily chart with a long lower shadow. Technically, this market action could mean weakness in the market with range bound action, which is also signaling absence of sharp downside momentum from the swing highs. Previous bearish pattern like lower tops and bottoms is in the process of reversal. After surpassing above the last lower top at 23,426 levels recently, Nifty 50 is presently in the process of new higher bottom formation in the short term. This is a good sign,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He believes the near-term uptrend of Nifty 50 remains intact and the present weakness could end up soon at the lows and another round of upside bounce is likely to resume from the higher lows.

“However, a decisive upside breakout of 23,500 – 23,600 levels could open more upside ahead. Immediate support is placed at 23,200 levels,” Shetti said.

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Dr. Praveen Dwarakanath, Vice President of Hedged.in, noted that after a sudden fall during the day, Nifty 50 took support from the middle of the Bollinger band and bounced back, indicating strength in the index.

“The momentum indicators on the hourly chart, after a drop of below 50 levels, show a rise, also indicating positive sentiments in the index. The Nifty 50 index formed a hammer candle with a bullish closing, indicating the momentum to continue towards the next resistance at 23,800 levels,” said Dwarakanath.

Options writer’s data for the weekly expiry showed increased writing of puts at the 23,300 and below levels and increased writing of calls at the 23,500 and above levels, indicating a rangebound index, he added.

VLA Ambala, Co-Founder of Stock Market Today noted that on the technical side, Nifty 50 formed a bullish pin bar candlestick pattern in the last session but remains far from its key support levels.

“I advise the ‘sell on the rise’ strategy to navigate the market. Based on these aspects, Nifty 50 can expect support levels between 23,270 and 23,080 and resistance near 23,690 and 23,800 in today’s session. The benchmark index’s momentum suggests it could trade within a wide range in the next 1 to 2 days,” Ambala said.

Bank Nifty Prediction

Bank Nifty index slipped 296.40 points, or 0.6%, to close at 49,210.55 on Monday, forming a Tweezer Bottom pattern on the daily charts, indicating a bullish reversal.

“Bank Nifty also took support from the middle line of the Bollinger band, indicating strength in the index. The index has formed a doji candle with a closing above its opening, indicating mild bullishness in the index. The average RSI line on a daily chart is sloping upside, indicating upside potential in the index,” said Dr. Praveen Dwarakanath.

Options writer’s data for the monthly expiry showed increased writing of the puts at the 49,000 and below levels, indicating mild bullishness 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.