Nifty 50, Sensex today: What to expect from Indian stock market in trade on October 10

Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday tracking a rally in global equities after US market indices, S&P 500 and the Dow Jones, registered record closing highs.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 25,200 level, a premium of nearly 80 points from the Nifty futures’ previous close.

On Wednesday, the domestic equity benchmark indices ended lower on profit-taking after the RBI policy announcement.

The Sensex fell 167.71 points to close at 81,467.10, while the Nifty 50 settled 31.20 points, or 0.12%, to close at 24,981.95.

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

“Technically, this market action signals rejection of bulls at the hurdles. Hence, this pattern could mean chances of further softness in the market. With steep intraday selloff from the highs of Wednesday, the market has not yet confirmed the significant bottom reversal pattern at the recent lows,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, a sustainable move only above 25,200 - 25,300 levels could confirm double bottom formation and that could possibly open doors for more upside. At the lower levels Nifty is expected to find strong support around the 24,700 - 24,600 zone.

“The short-term trend of Nifty 50 is still positive, but the display of lack of strength in the present upside bounce is likely to result in further weakness near to recent lows, before showing another round of upmove,” Shetti said.

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

Nifty OI Data

Nifty Open Interest (OI) data revealed the highest OI on the call side at the 25,200 and 25,300 strike prices, while on the put side, it was concentrated at the 24,800 and 24,700 strike prices, said Hardik Matalia, Derivative Analyst at Choice Broking.

Nifty 50 Prediction

Nifty failed to sustain the intraday upmove on October 9 and closed the session below 25,000 levels.

“On the hourly chart, the index closed just above the 20-DMA, indicating that the very short-term trend remains positive and is likely to stay so as long as it holds above 24,940. However, a drop below 24,940 could trigger a correction down to 24,800 / 24,700. On the upside, 25,100 may act as resistance,” said Rupak De, Senior Technical Analyst, LKP Securities.

Aditya Agarwal, Head of Derivatives & Technical Analysis at Sanctum Wealth expects Nifty 50 to consolidate in a broad range of 24,800 - 25,240 for next few sessions before giving a breakout on either side.

“On the higher side, the index will continue to find strong resistance around the 25,200 / 25,340 range and move towards those levels that can be used to book profits in trading longs and initiate fresh shorts,” said Agarwal.

According to VLA Ambala, Co-Founder, Stock Market Today, medium-term investors should consider topping their portfolios with a 10% dip in the benchmark index, as Nifty 50 has already corrected nearly 5%.

“I recommend a portfolio-based approach. I believe that if we avoid any significant pullback movements, the trend will remain bearish. Hence, I suggest a sell-on-rise strategy for the coming days. Meanwhile, the Nifty is expected to trade in the range of 25,470 to 24,460 over the next 2–7 trading sessions, with key weekly intraday levels to watch. Amid these developments, the Nifty index can expect support near 24,650 and 24,510 and resistance near 24,970 and 25,150 in the next session,” Ambala said.

Bank Nifty Prediction

Bank Nifty saw sharp spurt after RBI policy but failed to sustain at higher levels and closed Wednesday’s session 14 points lower at 51,007.

“Selling pressure was seen in private sector banks that kept the index under pressure, and finally, it closed around 51,000 levels. On the lower side, Bank Nifty will continue to find strong support around 50,640 / 50,460 levels, and dip towards those levels can be used to enter fresh longs, whereas on the higher side, 51,740 / 52,080 range will be strong resistance for the index,” said Aditya Agarwal.

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.