Indian Stock Market Expected to Open Lower Amid Global Weakness

Indian stock market benchmark indices, Sensex and Nifty 50, are anticipated to start the day lower in line with weak global cues.

The trends on Gift Nifty also suggest a negative opening for the Indian benchmark index, with the Gift Nifty trading around 23,385 level, nearly 100 points below the Nifty futures’ previous close.

On the previous trading day, the domestic equity benchmark indices concluded lower due to profit booking. The Sensex dropped 269.03 points to finish at 77,209.90, while the Nifty 50 settled 65.90 points lower at 23,501.10.

Nifty 50 displayed a reasonably negative candle on the daily chart with a minor lower shadow, signaling a potential bearish engulfing pattern. However, given the recent range-bound movements, a significant reversal pattern is unlikely. The short-term trend of Nifty remains range-bound with a weak bias.

In the week, Nifty 50 formed a small range negative candle on the weekly chart. This pattern may indicate a bearish spinning top type candle pattern, suggesting a follow-through weakness in the upcoming week could confirm the bearish trend.

Rupak De from LKP Securities highlights the indecisiveness in the Nifty movement, with a range of 23,300 to 23,600, setting the stage for a highly volatile monthly expiry. A move above 23,600 could drive Nifty towards 24,000, while a failure to hold above 23,300 might trigger market panic.

Bank Nifty, on the other hand, formed a bearish candlestick pattern on the daily charts with a Hanging Man pattern. The index registered its sixth consecutive week of gains, its longest winning streak in 19 months. Technical analyst Kunal Shah sees Bank Nifty’s immediate resistance at 52,000 and support at 51,000.