Nifty 50, Sensex today: What to expect from Indian stock market in trade on September 23

Indian stock market indices, Sensex and Nifty 50, are likely to open higher on Monday, extending gains from last week.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 25,900 level, a premium of nearly 110 points from the Nifty futures’ previous close.

On Friday, the domestic equity market indices ended over a percent higher, with the benchmark Nifty 50 closing near 25,800 level.

The Sensex jumped 1,359.51 points, or 1.63%, to close at 84,544.31, while the Nifty 50 settled 375.15 points, or 1.48%, higher at 25,790.95.

Nifty 50 formed a long bull candle on the daily chart, which indicates a decisive upside breakout in the market of the last 4-5 sessions range movement.

“The Nifty has broken above the range as well as the trend line resistance around 25,500 levels. Nifty on the weekly chart formed a reasonable bull candle that has surpassed the congestion area of the last three weeks around 25,300 - 25,500 levels and closed higher,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He believes the short term trend of Nifty 50 is sharply positive. Having surged up in one session on Friday, there is a possibility of consolidation / breather pattern in the short term, before moving up further. Next upside targets as per Fibonacci extension to be watched around 26,250, Shetti added.

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

Nifty 50 Prediction

Nifty 50 witnessed an excellent upmove on September 20 and closed the day higher by 375 points.

“Nifty 50 saw a sharp pullback on back of long accumulation coupled with short covering in heavyweight stocks that helped the index to breach 25,800. Overall, the structure for markets remains bullish and the Nifty 50, on the higher side, can move toward its next resistance zone of 25,920 / 26,000 levels,” said Aditya Agarwal Head of Derivatives & Technical Analysis at Sanctum Wealth.

He believes any dip towards 25,660 - 25,520 can be used as a buying opportunity from a short term perspective.

VLA Ambala, Co-Founder of Stock Market Today is of the view that the Nifty 50 index has been trading in the overbought zone without any immediate signs of weakness in its uptrend.

“While the overall trend remains bullish, I advise short-term investors to practice caution as high valuations are still a concern. I recommend maintaining a hedged position and shifting focus to PSU stocks, which continue to underperform despite the index hitting record levels. Based on these situations, the Nifty index could expect support levels around 25,740 and 25,670 and notice resistance between 25,950 and 26,000 in the next session,” Ambala said.

Nifty 50 is walking on the Upper Bollinger band, which ideally shows signs of further bullishness.

“Momentum indicators are also showing signs of continued bullishness as the ADX DI+ line has started to trend on the upside. The options writing data for the present week’s expiry shows increased put writing below 25,700 levels and short covering in 25,500 (ITM) calls, which also indicates bullishness in the index,” said Dr. Praveen Dwarakanath, Vice President of Hedged.in.

Bank Nifty Prediction

Bank Nifty index finally breached its previous highs on Friday after 3 months of consolidation, and ended 755.60 points, or 1.42%, higher at a new all time closing high level of 53,793.20.

“On the higher side, call writing at the 54,000 strike option will act as an immediate resistance zone for the index, however a close above that can trigger another round of short covering that can drive it towards 54,280 / 54,440 levels,” said Aditya Agarwal.

On the lower side, he believes, the Bank Nifty index will find immediate support around 53,580 - 53,320 and fresh long positions can be initiated around those 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.