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

Indian stock market indices, Sensex and Nifty 50, are likely to see a weak opening on Friday tracking mixed global market cues. The domestic equity market witnessed a sharp in the previous session with both the frontline indices cracking more than 2%.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 25,425 level, a discount of nearly 50 points from the Nifty futures’ previous close.

On Thursday, the domestic equity market crashed, with the benchmark indices falling over 2% each amid escalating Iran-Israel war.

The Sensex plunged 1,769.19 points, or 2.10%, to close at 82,497.10, while the Nifty 50 settled 546.80 points, or 2.12%, lower at 25,250.10.

Nifty 50 formed a long bear candle on the daily chart with a long upper shadow.

“Technically, this pattern is indicating a selling momentum on the downside and also a sell-on-rise in the market. The unfilled opening downside gap of Thursday suggests more weakness ahead. The immediate supports of daily 10 and 20 period moving average has been broken on the downside and another crucial support of ascending trend line has also been taken on the downside around 25,400 on Thursday,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the positive chart pattern like higher tops and bottoms is still intact as per daily chart and the current chart pattern is indicating higher chance of negation of this bullish setup.

“The sharp weakness of Thursday has changed the short-term sentiments of the market to downside. There is a possibility of Nifty 50 sliding down to the cluster supports of around 25,100 – 25,050 (weekly 10 period EMA and 23.6% Fibonacci retracement) in the coming sessions, before showing any reasonable upside bounces,” said Shetti.

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

Nifty OI Data

On option front, Chandan Taparia, Head, Equity Derivatives & Technicals, Wealth Management, MOFSL noted that the maximum Call Open Interest (OI) is at 26,000 then 27,000 strike while maximum Put OI is at 25,000 then 24,000 strike.

Call writing is seen at 26,000 then 25,500 strike while Put writing is seen at 24,000 then 25,000 strike. Option data suggests a broader trading range in between 24,800 to 25,800 zones while an immediate range between 25,000 to 25,500 levels, Taparia said.

Nifty 50 Prediction

Nifty 50 tanked on October 4 and closed the day with heavy loss of 547 points below the 25,300 level.

“Nifty 50 closing below its support of 25,300 indicates a downside in the index from the present levels. A dead cat bounce can be expected from either at the present levels or at 25,000 levels which is likely to be short-lived. The closing at the present levels or even below 25,500 levels tomorrow can trigger further room on the downside till 24,800 levels. All momentum indicators are pointing towards the downside, indicating weakness in the index,” said Dr. Praveen Dwarakanath, Vice President of Hedged.in.

Options writer’s data showed increased call writing in the present month’s expiry above 25,500 levels, indicating a weakness in the index to continue below the 25,500 levels, he added.

Aditya Agarwal, Head of Derivatives & Technical Analysis at Sanctum Wealth noted that Put unwinding coupled with fresh short addition further escalated the selling pressure and index closed below 25,300 levels.

“From a short term perspective, Nifty 50 looks weak and a pullback towards 25,450 – 25,500 will be used by traders to exit from long positions and initiate fresh shorts. We expect that selling may continue for some more time and on the lower side it can move towards 24,800 levels,” Agarwal said.

VLA Ambala, Co-Founder of Stock Market Today suggests in this bearish situation, investors should hedge their portfolios, and traders should adopt the ‘sell high’ strategy.

“Nifty formed a bearish red candlestick pattern and closed below the 20-day EMA (Exponential Moving Average). The current momentum suggests that it could test the 50-day EMA level. Considering these aspects, we can expect the benchmark index Nifty to gain support between 25,040 and 24,950 and face resistance between 25,290 and 25,320,” Ambala said.

Bank Nifty Prediction

Bank Nifty index tanked 1,077.40 points, or 2.04%, to close at 51,845.20 on Thursday, forming a bearish candlestick pattern on the daily charts.

“Bank Nifty has broken its support at 52,800 levels, an indication of downside in the index. Momentum indicators are pointing towards a further fall, however, Bank Nifty can see a bounce from its support at 51,300 levels which is the 20 EMA. Options writer’s data shows increased writing at 52,000 levels and above both in weekly and monthly expiries, indicating weakness to continue in the index at the present levels,” said Dr. Praveen Dwarakanath.

Meanwhile, according to Aditya Agarwal, the short term outlook for Bank Nifty remains negative and on the lower side it can test 51,500 – 51,200 levels, while any upside pullback towards 52,460 – 52,740 levels can be used to trim long exposure and initiate fresh shorts in Bank Nifty.

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.