Nifty 50, Sensex today: What to expect from stock market indices in September 25 trading

Indian stock market indices, Nifty 50 and Sensex are likely to open on a subdued note on Monday following weak global cues.

GIFT Nifty trends also indicate a flat to negative start for the Indian benchmark indices. GIFT Nifty was trading around 19,694 levels compared to the previous close of 19,705 for Nifty 50 futures.

On Friday, domestic benchmark indices closed with losses for the fourth consecutive session. The Sensex fell 221.09 points to close at 66,009.15, while the Nifty fell 68.10 points to 19,674.25.

Nifty 50 formed a proper negative candle on the daily chart with upper shadow.

“Technically this market activity on Friday indicates selling at an opportunity for upside and it also indicates a continuation of the downtrend. The last two opening gaps remain empty after a few sessions of its formation and these gaps can be considered as bearish breakaway and bearish runaway gaps respectively. “This could mean more weakness for the markets going forward,” said Nagaraj Shetty, technical research analyst at HDFC Securities.

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Meanwhile, on the weekly chart, Nifty 50 formed a long bear candle this week, indicating a sharp reversal to the downside.

Generally, the formation of such long negative candles after a proper uptrend according to the weekly charts indicates the possibility of an important top reversal pattern.

Shetty believes that the short term trend of Nifty continues to be weak.

Also read: 5 things that changed for the market over the weekend: GIFT Nifty, oil prices, FII selling due to global cues for Sensex today

What to expect from Nifty and Bank Nifty today:

nifty 50

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Nifty 50 witnessed continuous selling throughout the week, resulting in a 2.80% decline from its all-time high.

“This recent correction has caused it to fall below the important 21-day exponential moving average (21EMA). At this point the sentiment appears to be bearish, with the key support level identified at 19,600. Rupak Dey, Senior Technical Analyst at LKP Securities, said a breach below 19,600 could potentially initiate a more significant market correction.

He believes that on the positive side, 19,800 is expected to act as resistance level.

Also read: Day Trading Guide for Today: Six Stocks to Buy or Sell on Monday – September 25

bank nifty

Selling pressure in Bank Nifty seems to have subsided as the index fell 12 points to close at 44,612 on September 22.

“A significant double top breakdown pattern was observed in the Bank Nifty index, which often signals a change in trend. This bearish pattern was largely influenced by selling pressure in HDFC Bank. The index broke its 20-day moving average (20DMA) located at 45,000. Kunal Shah, senior technical and derivatives analyst at LKP Securities, said a break above this level could lead to some short-covering, but the overall sentiment remains bearish.

Shah believes that the current sentiment in the Bank Nifty index remains bearish and as a result, is advised to maintain a “sell on growth” approach.

The next immediate support is seen in the 44,500-44,400 range, he said.

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Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before taking any investment decision.

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