Indian stock indices Sensex and Nifty 50 are likely to open cautiously amid mixed global market signals and weak domestic sentiment following the fresh Hindenburg report against Sebi chairman Madhabi Puri Buch in the Adani Group case.

The trends on the Gift Nifty also indicate a slightly negative start for the Indian benchmark. Gift Nifty was trading around 24,362 level, a discount of almost 40 points from the Nifty futures’ previous close.

The stock market is expected to react to the latest investigative report from a US-based form trader Hindenburg Research against Adani Group and Sebi Chairman Madhabi Puri Buch, who has vehemently denied all the allegations terming them as “malicious”, “baseless” and “bereft of any truth”.

On Friday, domestic stock indexes ended over a percent higher each led by a rally in index heavyweights.

The Sensex jumped 819.69 points, or 1.04%, to close at 79,705.91, while the Nifty 50 settled 250.50 points, or 1.04%, higher at 24,367.50.

Nifty 50 formed a small candle on the daily chart with less upper and lower shadow and with gap up opening.

“Nifty is currently positioned at the edge of key resistance at around 24,350 – 24,380 levels, which is a lower end of earlier sharp opening downside gap on August 5. Hence, a longer rally from here could possibly result in complete filling of the said gap around 24,690 levels , says Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

He believes that the range movement for a few sessions is now on the verge of upside breakout. A decisive move over 24,450 levels can draw Stylish 50 towards the next hurdle at 24,700 levels in the near term, he added.

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

Nice OI data

Analysis of Nifty put options reveals significant open interest (OI) at the 24,000 level, indicating potential support there. On the call side, notable OI concentrations are observed at 24,800 and 25,000 levels,” said Mandar Bhojane, technical research analyst at Choice Broking.

He advises traders and investors to look for buying opportunities during Nifty dips and to use appropriate stop-loss strategies during the identified support levels.

Nifty 50 Prediction

The Nifty 50 witnessed a sustained rally of 250 points on August 9 and closed near the day’s high.

“The weekly chart shows a bearish gap at higher levels, indicating weakness, but there is also some buying interest at lower levels. On the daily chart, after Monday’s selloff, prices traded within a defined range of 24,000 – 24,400 throughout the week .The upper part of this range is in line with the 20 EMA (exponential moving average) and the bearish gap, while the lower part coincides with the 50 EMA, said Rajesh Bhosale, Equity Technical Analyst, Angel One.

Looking ahead to this week, he believes momentum could be triggered if prices break out of this range. According to him, a breakout above 24,400 – 24,450 could generate optimism, potentially filling the recent gap at 24,700.

“However, given the ongoing global uncertainty, any bounce could be an opportunity to reduce long positions. On the downside, support is seen at 24,100-24,000, and a break below this range could lead to further declines in the short term,” Bhosale said.

“Traders should closely monitor these levels and plan their trades accordingly. It is also advisable to focus on stock-specific actions and adopt a selective approach. Since market movements were mainly driven by global signals, it is important to stay updated on those developments as well,” he added .

VLA Ambala, co-founder of Stock Market Today noted that although the RSI for the daily timeline has cooled, the readings for the higher time frames are still elevated, as can be seen from the reading of 68 on the weekly and 75 on the monthly time frames.

“My analysis suggests that there may be room for correction within the next 4-7 days. Nifty can expect support levels between 24,320 and 24,260 and face resistance around 24,440 and 24,530 in the next session,” Ambala said.

Bank Nifty Prediction

The Bank Nifty index gained 327.80 points, or 0.65%, to end Friday’s session at 50,484.50.

“For Bank Nifty now 50,000 would be the immediate reference point for the bulls. Above 50,000, it can bounce back up to 50,800 and 50-day SMA or 51,200. On the downside, an uptrend below 50,000 would be vulnerable. During the same, we can expect 49,700-49,500,” said Amol Athawale, VP-technical Research, Kotak Securities.

Disclaimer: The views and recommendations above are those of individual analysts or brokerage firms and not of Mint. We advise investors to check with certified experts before making any investment decisions.