Positive Outlook for Nifty 50 and Sensex Today
The Indian stock market is anticipated to open on a positive note on October 23, driven by optimism surrounding a potential trade deal between India and the United States. This positive sentiment is reflected in the trends of the Gift Nifty, which indicates a significant gap-up start for the Indian benchmark indices, Nifty 50 and Sensex.
On Tuesday, the Indian market concluded with slight gains during the special Diwali Muhurat trading session. The Nifty 50 finished above the 25,850 mark, signaling a bullish trend. The Sensex gained 62.97 points, closing at 84,426.34, while Nifty 50 rose by 25.45 points, ending at 25,868.60. The market was closed on Wednesday for Diwali Balipratipada, adding to the anticipation for today.
Analysts are pointing towards a balanced yet cautiously bullish setup based on Nifty 50's open interest data for the upcoming expiry. The total Call open interest stands at 13.60 crore against 13.51 crore in Puts, indicating a neutral stance with a mild positive bias. Fresh additions in Calls and Puts suggest traders are hedging against near-term volatility while maintaining a bullish outlook.
According to Ponmudi R, CEO of Enrich Money, the market structure remains bullish as long as Nifty 50 stays above 25,800, with immediate support at 25,750. Key support levels are identified between 25,600 and 25,500, while breaking above the resistance zone of 26,000 to 26,300 could lead to fresh lifetime highs.
The Bank Nifty index experienced a slight drop of 26.00 points, closing at 58,007.20, after facing multi-month resistance. Analysts note that a sustained close above 58,250 could confirm a breakout and lead towards higher levels, while support remains between 57,600 and 57,400.
In summary, today's trading session is expected to be influenced by positive sentiment from potential trade deals, festive liquidity, and steady foreign institutional inflows. Investors should keep a close watch on market movements as the Nifty 50 and Sensex may set the stage for new highs.
