Nifty 50, Sensex today: What to expect from Indian stock market in trade on August 27

The Indian stock market indices, Sensex and Nifty 50, are likely to open on a tepid note Tuesday tracking weak cues from global peers.

The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading around 25,025 level, a discount of nearly 20 points from the Nifty futures’ previous close.

On Monday, the domestic equity market indices sharply higher, with the Nifty 50 reclaiming the 25,000 level.

The Sensex rallied 611.90 points, or 0.75%, to close at 81,698.11, while the Nifty 50 settled 187.45 points, or 0.76%, higher at 25,010.60.

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

“Technically, this pattern indicates an attempt of an upside breakout of the previous down gap resistance of 2nd August around 24,950 - 25,000 levels. Hence, the two important down gaps of 2nd and 5th August have been filled completely around 24,950 - 24,680 respectively and Nifty closed higher. This is a positive indication,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He believes the short-term trend of Nifty 50 continues to be positive and having moved above the crucial hurdles around 24,700 and 24,950 levels, the market is now set to zoom into new all-time highs soon.

“A decisive move above the 25K mark could open the upside target of 25,300 - 25,400 levels in the near term,” Shetti added.

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

Nifty OI Data

Analysing the Nifty Open Interest (OI) data, on the call side, the highest OI was observed at the 25,200 and 25,500 strike prices, while on the put side, the highest OI was at the 24,800 strike price, said Mandar Bhojane, Research Analyst at Choice Broking.

Nifty 50 Prediction

Nifty 50 regained its upside momentum on August 26 and closed the day with healthy gains of 187 points above the 25,000-mark.

“On the daily chart, a visible green candle has formed after two consecutive negligible red candles, suggesting improving sentiment. However, resistance is evident at 25,080, and a decisive move is needed to witness a rise toward 25,300. On the other hand, failure to move above 25,080 might trigger selling in the market, potentially bringing the index back toward 24,800,” said Rupak De, Senior Technical Analyst, LKP Securities.

VLA Ambala, Co-Founder of Stock Market Today noted that during Monday’s session, higher liquidity in the market led DII and mutual fund houses to treat every dip as a buying opportunity, fueling FOMO buying in an ongoing bullish trend.

“During the session, Nifty formed a bullish Marubozu candlestick pattern on the daily timeframe. The index’s RSI readings of 61 on the daily time frame and 72 on the weekly time frame also reflected the market’s sentiment. Despite the Nifty index nearing its all-time high, some stocks are consolidating and may soon break, creating new buying opportunities,” Ambala said.

According to her, Nifty can expect support levels at 24,980 and 24,910, while resistance could be noticed around 25,105 and 25,180 in the next session.

Aditya Agarwal, Head of Derivatives and Technical at Sanctum Wealth believes on an immediate basis, Nifty 50 index will find minor resistance around 25,050 - 25,100 levels and can see some profit booking ahead of monthly expiry.

“However, the overall trend remains strong and any dips towards 24,940 - 24,860 can be used to initiate fresh long positions in Nifty for upside targets of 25,180 - 25,240,” Agarwal said.

Bank Nifty Prediction

Bank Nifty index gained 214.65 points, or 0.42%, to close at 51,148.10 on Monday, forming an Inverted Hammer candlestick pattern on the daily timeframe.

“Bank Nifty opened on a strong note in Monday’s session but failed to sustain above 51,200 levels and saw profit booking that kept indices under pressure throughout the session. We expect Bank Nifty to consolidate between 50,900 - 51,300 and breakout of this range can further set the direction,” Agarwal said.

According to him, above 51,300, a short covering move may trigger that can drive the index towards 51,700 - 51,900 levels.

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.