Nifty 50, Sensex today: What to expect from Indian stock market in trade on July 1

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

Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open flat on Monday amid mixed global cues.

The trends on Gift Nifty also indicate a muted start for the Indian benchmark index. The Gift Nifty was trading around 24,135 level, near to Nifty futures’ previous close.

On Friday, the domestic equity benchmark indices ended lower amid profit booking at record high levels.

The Sensex declined 210.45 points to close at 79,032.73, while the Nifty 50 settled 33.90 points, or 0.14%, higher at 24,010.60.

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

“Technically, this formation is indicating minor negative set up for the market at the highs. Further weakness below 23,800 levels could confirm a short term top reversal pattern. However, a sustainable move above 24,200 levels is likely to negate this bearish formation,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He believes the near-term uptrend status of Nifty remains intact. Having moved up sharply Nifty is currently facing hurdles at the resistance of 24,000 - 24,100 levels. Any dip from here is likely to be a buying opportunity, he added.

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

Nifty 50 Prediction

Nifty 50 slipped into minor profit booking from the new highs on June 28 and closed the day lower by 33 points.

“The index formed a small-bodied red candle, breaking a four-day winning streak. The sentiment continues to remain strong as the index closed significantly above the critical moving average. However, after a continuous rally, the index looks a bit heavy and might attract profit booking if Nifty sustains below 24,000,” said Rupak De, Senior Technical Analyst, LKP Securities.

On the lower end, he believes, the index might fall towards 23,850 / 23,700 in the short term upon a decisive fall below 24,000. On the higher end, resistance is visible at 24,200.

Despite the higher valuations, VLA Ambala, Co-Founder of Stock Market Today believes Nifty’s rise is consistent with anticipated profit booking due to the market’s overbought conditions.

“Typically, when prices hit overbought zones they tend to correct. Hence, any dip of 5-12% should be considered a buying opportunity. Investors in Nifty ETFs or bigger ETFs should consider such dips as opportunities to average. With no major global red flags and old concerns already priced in, the market remains resilient,” Ambala said.

For the Nifty, support levels could be found between 23,810 and 23,750 in the next session and resistance could be faced between 24,030 and 24,100, she added.

Bank Nifty Prediction

Bank Nifty declined 469.05 points, or 0.89%, to close at 52,342.25 on Friday.

“The Bank Nifty index experienced its first meaningful correction after a nonstop rally in the past week. For the selling pressure to continue, there needs to be follow-up selling; otherwise, the index may get stuck in a consolidation range. The immediate support is at 52,000, where the highest open interest is built up on the put side, while the immediate resistance lies in the 52,700 - 53,000 zone,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

According to Ruchit Jain, Lead Research, 5paisa.com, the Bank Nifty index has closed around its support of 52,300, which if broken, would see a correction upto 51,500 - 51,600 range.

“In case of such correction, one should look for buying opportunities near the mentioned support. On the higher side, the initial hurdle is seen around 53,200, which if surpassed, then we should see a continuation of the momentum towards 54,000 - 54,200,” Jain said.

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