Share Market outlook today: Nifty, Bank Nifty likely to rise amid favorable global cues; check support, resistance

Stock Market Today, Nifty, Bank Nifty: The SGX Nifty gained 0.94% in trade on Monday morning, signaling that domestic indices NSE Nifty 50 and BSE Sensex would open on a positive basis. Nifty futures were 174 points higher on the Singaporean exchange at 18,722. 

U.S. stocks finished sharply higher on Friday as talks on raising the U.S. debt ceiling progressed, while chip stocks surged for a second straight day on optimism about artificial intelligence. The S&P 500 climbed 1.30%, Nasdaq gained 2.19%, while Dow Jones Industrial Average rose 1%. Shares in the Asia-Pacific region were trading in the green on positive cues from Wall Street. China’s Shanghai Composite gained 0.4% in trade, while Japan’s Nikkei 225 soared 1.39%. Hong Kong’s Hang Seng index added 0.26% while South Korea’s Kospi advanced 0.16%. The Taiwan Weighted index gained 0.88%.

Domestic indices soared in trade on Friday. NSE Nifty 50 touched a fresh high for the calendar year 2023, crossing the 18,500 mark. However, the index gave up that level to close at 18,499, up 0.97%. BSE Sensex surged over 1% intraday, reclaiming and closing above the 62,500 mark.

NSE Nifty 50 Outlook

Nifty 50 support at 18,333

“We observe that the NSE Nifty 50 has taken out the previous swing high of 18,459, indicating the bulls remain in control. We expect the uptrend to continue in the coming sessions. Immediate upside targets for Nifty are now at 18,696. Short term corrections are not ruled out. Crucial support to watch for weakness is at 18,333,” said Subash Gangandharan, Senior Technical and Derivative Analyst, HDFC Securities.

Nifty 50 could surpass life-time high

“Nifty has managed to surpass the resistance of 18450 zones. We expect this momentum to continue and Nifty to touch its previous lifetime high in the coming weeks. The index is now just 380 points or 2% away from its lifetime high. With the result season nearing its end, the focus will now shift to macro data, US debt negotiations and upcoming central bank policy meetings,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Nifty 50 added 1.63% last week

“Nifty gained 1.63% over the week, helped by a 0.97% rise on Friday. Up move on Friday showed strength with wider participation. Nifty could now trade in the 18,660-18,393 band over the near term,” Deepak Jasani, Head of Retail Research, HDFC Securities said. 

Nifty 50 could test 18,700 

“Markets edged higher on Friday and the buying was witnessed across the sectors wherein FMCG, IT and realty were among the top gainers. The tone was positive in the index amid consolidation and now recovery in the US markets combined with improved participation from the IT sector has provided the needed trigger. Besides, a strong surge in heavyweights like Reliance Industries further added to the positivity. Since NSE Nifty 50 has decisively crossed 18,400 levels, we are now eyeing 18,700 to be tested shortly. Traders should align their positions accordingly,” Ajit Mishra, VP – Technical Research, Religare Broking said. 

Bank Nifty Outlook

Target 45,000 after Bank Nifty closes above 44,160

“Bank Nifty has managed to consistently close above its 10 DEMA even when Nifty closed below its 10 DEMA for a couple of trading sessions. However, Bank Nifty is yet to cross its immediate hurdle of 44,160 levels whereas Nifty has closed well above its hurdle. A strong upside till 45,000 can be seen once it confirms a breakout after closing above 44,160 levels,” said Gaurav Bissa, VP, InCred Equities.

Bulls overpower Bank Nifty bears

“The Bank Nifty index witnessed a strong comeback by the bulls, overpowering the bears. There was consistent buying activity throughout the day, indicating bullish sentiment in the market. If the index manages to sustain above the level of 44,000, it has the potential to experience further upside towards 45000. The momentum indicator RSI has also confirmed a positive crossover, reinforcing the buy signal,”  Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said.