Nifty 50, Sensex today: What to expect from Indian stock market in trade on April 18

The trends on Gift Nifty also indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 22,148 level, a discount of nearly 50 points from the Nifty futures’ previous close.

On Tuesday, the Indian stock market indices extended losses for the third straight session as geopolitical concerns weighed on investor sentiments. 

The Sensex declined 456.10 points, or 0.62%, to close at 72,943.68, while the Nifty 50 dropped 124.60 points, or 0.56%, to settle at 22,147.90.

The Indian stock market was shut on Wednesday for Ram Navami.

Nifty 50 formed a small positive body candle on the daily chart with minor upper shadow.

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“Technically, this market action signals range bound action in the market with weak bias. Normally, such formations post reasonable decline indicate an upside bounce from the lows. Nifty is currently placed near the crucial support of ascending trend line as per weekly chart and near lower end of an ascending channel on the daily chart around 22,000 levels. Hence, there is a possibility of a bounce in the short term,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

He believes the short-term trend remains weak. But, having placed near the cluster support of around 22,000 levels, one may expect upside bounce from the lows in coming sessions.

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

Nifty OI Data

Coming to the Nifty Open Interest (OI) data, on the call side, the highest OI was observed at 22,400 followed by 22,500 strike prices while on the put side, the highest OI was at 22,000 strike price, said Deven Mehta, Research Analyst at Choice Broking.

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Nifty 50 Prediction

The Nifty 50 index slipped into follow-through weakness amidst a range movement on April 16 and closed the day lower by 124 points.

“Technically, the trend has weakened as the index fell below the 21-EMA (Exponential Moving Average). However, following the sharp decline, the index may find short-term support within the 21,930 – 22,030 bands, where previous congestion occurred. Conversely, failure to maintain support at 21,930 could exacerbate panic in the market,” said Rupak De, Senior Technical Analyst, LKP Securities.

On the higher end, resistance for the short term is positioned at 22,400, he added.

Rahul Ghose, CEO, Hedged.in notes that the 22,000 put option continues to have the highest open interest for both the April as well as the May series and this level should definitely act as a support for the Nifty Index. 

“However one should not go long till 22,500 is taken out with 2 bullish closings as this may just be a dead cat bounce. It is important to look at the Vix as well to see the level of rise to ascertain the next direction of move on the Index,” Ghose said.

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Bank Nifty Prediction

The Bank Nifty index declined 288 points to close at 47,485 on Tuesday.

“The Bank Nifty index, after a shaky start, witnessed a recovery in the latter half of the session and managed to close above its 20-day moving average (20 DMA), which is situated at 47,500. If the index sustains above the 47,500 – 47,400 range, it could experience a pullback towards the 48,000 level,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

However, according to Shah, a break below 47,300 on a closing basis might trigger further selling pressure, potentially driving the index down towards the 46,500 level.

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.

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Published: 18 Apr 2024, 07:29 AM IST