Indian Stock Market Set to Open Higher Amid Mixed Global Cues

The Indian stock market is expected to open higher on Monday, following mixed global market cues. Both the Sensex and Nifty 50 are anticipated to start the trading day on a positive note. The Gift Nifty is also indicating a positive start with trading around 21,649 level.

Last week, both the domestic benchmark indices experienced a drop of around 1.3% in the holiday-shortened week. On January 25, the Sensex fell 359.64 points, while the Nifty 50 ended 101.35 points lower. Nifty 50 formed a small negative candle on the daily chart with a minor lower shadow.

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, stated, “The current chart pattern indicates a sell-on-rise opportunity in the market with volatility. Negative chart patterns like lower tops and bottoms are intact, and the recent upside bounce in the market could be in line with another lower top formation. But the lower top reversal needs to be confirmed at the highs.” He believes the short-term trend of Nifty remains choppy with a weak bias and could encounter strong resistance around 21,500-21,600 levels in the coming sessions.

Rupak De, Senior Technical Analyst at LKP Securities, stated, “The sentiment may continue to lean towards the bears as the Nifty struggled to surpass the 21,500 mark, where call writers held substantial positions. Looking ahead, the trend is likely to remain sideways, fluctuating within the range of 21,300 and 21,500.” However, he believes a decisive breakthrough above 21,500 could propel the index towards 21,700 / 22,000 in the short term.

Bank Nifty index, on the other hand, ended off-lows on Thursday, closing 216 points lower. Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said, “The bulls successfully defended the crucial support level of 44,500, establishing it as a critical line of defense. If the index sustains above this support, a potential pullback rally towards the resistance levels of 45,500 / 46,000 is anticipated in the near term.” However, a breach below this support on a closing basis could lead to further downside pressure, with the index targeting levels around 44,000 – 43,500.

Overall, the Indian stock market is expected to open higher today, with the Sensex and Nifty 50 indicating a positive start. Investors will closely monitor the market for further developments.