Nifty 50, Sensex on October 31: What to expect in trade today
The Indian stock market is expected to open flat on Tuesday tracking largely positive global cues.
The trends on Gift Nifty also indicate a tepid start for the Indian benchmark index. The Gift Nifty was trading around 19,220 level as compared to the Nifty futures’ previous close of 19,234.
The equity market extended gains on Monday with both the benchmark indices ending half a percent higher led by rally in select heavyweights.
The BSE Sensex ended 329.85 points higher at 64,112.65, while the NSE Nifty 50 gained 93.65 points to 19,140.90.
Nifty 50 formed a reasonable positive candle on the daily chart with a long lower shadow.
Also Read: 6 things that changed for the stock market overnight – Gift Nifty, Wall Street rally to China PMI
“Technically, this pattern indicates continuation of upside bounce in the market. The recent swing low of 18,837 of October 26 could now be considered as a short-term bottom reversal for the market,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
According to Shetti, the larger degree of negative pattern like lower tops and bottoms is intact on the daily chart and current upside bounce could be in line with a formation of new lower top of the sequence. Still there is no confirmation of any lower top reversal pattern yet at the highs.
He believes the short-term trend of Nifty continues to be positive with range bound action and the present upside bounce is expected to continue for the short term.
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Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty 50
The Nifty 50 index staged a strong recovery with the bulls successfully defending the previous day’s low, ultimately closing at its highest point on October 30.
“Despite a broader negative outlook due to the prevailing downtrend, the possibility of a pullback exists, potentially taking the index to the 19,300 mark. However, it’s crucial to note that the support level at 18,900 is critical, and any closing breach below it would shift control to the bears, potentially leading the index down to the 18,500-18,300 range,” said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.
Also Read: Day trading guide for stock market today: Six stocks to buy or sell on Tuesday — 31st October
Bank Nifty
The Bank Nifty index also rose for the second straight session to end 257 points higher at 43,039 on Monday.
“If Bank Nifty can maintain levels above 43,000, there is potential for further gains in the range of 43,500-43,800. This resurgence signals a positive trend in the trading session,” Shah said.
He believes the immediate support for Bank Nifty is 42,800, while it can face resistance at 43,500 levels.
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Updated: 31 Oct 2023, 07:43 AM IST
