Indian Stock Market Preview
The Indian stock market is expected to witness a cautious start on Wednesday, September 11, after the Nasdaq Composite hit a record high in the U.S. overnight. The positive global cues are likely to support investor sentiment, but the domestic market may remain range-bound amid profit booking.
On Tuesday, both benchmark indices ended higher, with Sensex closing at 81,425.15 (up 323.83 points or 0.40%) and Nifty 50 settling at 24,973.10 (up 104.50 points or 0.42%). This marked the sixth consecutive day of gains for the Nifty 50.
The Gift Nifty, which indicates the early trend of Indian equities, was trading near the 25,080 level, reflecting a muted start for the day.
Sensex Prediction Today
The BSE Sensex witnessed profit booking at levels above 81,600 on September 10 but managed to stay comfortably above the key support zone.
Key Support and Resistance Levels
- Support Levels: 81,200 (50-day SMA) and 81,000
- Resistance Levels: 81,700 – 82,000
“As long as Sensex trades above 81,000, the bullish sentiment is intact. A break below this zone may trigger selling pressure, but if momentum continues, the index could test 82,000 levels,” said Shrikant Chouhan, Head of Equity Research, Kotak Securities.
Nifty 50 Prediction Today
The NSE Nifty 50 displayed indecisiveness on the daily chart by forming a small-bodied Doji candle with minor shadows on both sides, indicating hesitation near the 25,000 resistance level.
Technical Insights
- Resistance Zone: 25,000 – 25,200
- Support Zone: 24,900 – 24,800
- Trend: Positive bias continues as Nifty has closed higher for six straight sessions
“Nifty 50’s small red candle with upper and lower shadows reflects a lack of strength in pushing past the overhead resistance around 25,000. However, the unfilled upside gap from the last two sessions is a strong positive sign,” said Nagaraj Shetti, Senior Technical Analyst at HDFC Securities.
Derivatives Market Signals
The derivatives data indicates a tussle between bulls and bears around the 25,000 mark.
- Highest Call Open Interest (OI): 25,200 strike – signals resistance
- Highest Put OI: 25,000 and 24,900 strikes – strong support base
“The positioning suggests that resistance is placed near 25,200. A sustained close above this level is crucial to maintain bullish momentum,” said Amruta Shinde, Technical & Derivative Analyst, Choice Equity Broking.
Bank Nifty Outlook
The Bank Nifty index has been consolidating after a strong rally in the past week. The performance of financial stocks remains key for the broader market.
- Support Levels: 52,800 – 53,000
- Resistance Levels: 53,800 – 54,200
If Bank Nifty sustains above 53,000, it could trigger renewed buying interest, helping Nifty 50 cross the crucial 25,200 resistance zone.
Global Market Cues Driving Sentiment
Indian equities are expected to take direction from global markets, particularly Wall Street, where the Nasdaq closed at a record high led by technology stocks.
- Dow Jones Industrial Average: Flat performance
- S&P 500: Extended gains on rate-cut optimism
- Nasdaq Composite: New record high on tech-led rally
Falling U.S. bond yields and expectations of a Federal Reserve rate cut later this month are fueling optimism across global markets.
Key Factors to Watch Today
Several domestic and international triggers are likely to influence Nifty 50 and Sensex today:
Domestic Factors
- Profit booking near all-time highs
- Movement in banking and IT stocks
- FIIs (Foreign Institutional Investors) flow data
- Corporate updates and macroeconomic indicators
Global Factors
- U.S. inflation data and Fed policy outlook
- Performance of Asian markets in early trade
- Dollar index and crude oil price movement
Market Sentiment – What Traders Should Do
- Bullish View: As long as Nifty 50 sustains above 24,900, traders can hold long positions with a target of 25,200 – 25,300.
- Cautious View: If Nifty slips below 24,900, profit booking may intensify, dragging it towards 24,800 – 24,700 levels.
- Bank Nifty Strategy: Stay long above 53,000 with strict stop-losses.
Expert Tips for Traders
- Focus on Resistance Levels: Watch 25,200 for Nifty and 82,000 for Sensex.
- Track Sector Leaders: IT, banking, and auto stocks may drive momentum.
- Maintain Stop-Losses: Avoid aggressive longs if Nifty dips below 24,900.
- Follow Global Trends: Nasdaq’s performance and Fed outlook are critical.
Conclusion
The Indian stock market is likely to open on a muted note but retain its bullish undertone as long as Nifty 50 holds the 24,900 support zone. With Nasdaq’s record high fueling optimism, traders may witness stock-specific action, particularly in banking and IT sectors.
For sustained upward momentum, Nifty 50 must close above 25,200, and Sensex needs to break past 82,000 levels. Until then, a range-bound market with stock-specific opportunities is expected.
