The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Wednesday, tracking gains in global markets.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 23,028 level, a premium of nearly 50 points from the Nifty futures’ previous close.

On Tuesday, the Indian stock market saw a recovery rally after recent weakness, with the benchmark indices closing with decent gains.

The Sensex rallied 535.24 points, or 0.71%, to close at 75,901.41, while the Nifty 50 settled 128.10 points, or 0.56%, higher at 22,957.25.

Nifty 50 formed a long-legged Doji candlestick pattern on the daily chart, reflecting indecision in the market.

Analysts believe the Nifty’s rebound from key support, coupled with bullish divergence on hourly charts and RBI’s liquidity measures, hints at a mildly optimistic outlook. However, the index struggled to sustain above the psychological barrier of 23,000, which remains a formidable resistance.

Nifty 50 index continues to trade below its 10-day EMA (Exponential Moving Average), which acts as a ceiling at 23,100. It is hovering near the pivotal 23,000 – 23,100 range, a resistance zone fortified by aggressive call writing.

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

Sensex Prediction

The Indian stock market witnessed a roller coaster of activity, and the Sensex ended up by 535 points at 75,901 on Tuesday.

“Technically, after a promising opening, the market bounced back sharply; however, it once again witnessed profit booking at higher levels. On daily charts, it has formed a long-legged Doji candlestick formation, which suggests indecisiveness between the bulls and the bears. We believe that 76,000 will act as a trend-decider level for the bulls,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

According to him, above 76,000, the Sensex could retest levels of 76,300 to 76,500. Conversely, below 75,700, selling pressure is likely to accelerate, and the index could slip to levels of 75,400 to 75,200.

Nifty OI Data

Nifty Open Interest (OI) data indicates the highest OI on the call side at the 23,000 and 23,100 strike prices, highlighting strong resistance levels. On the put side, OI is concentrated at the 22,900 and 22,800 strike prices, marking these as key support levels, said Hardik Matalia, Derivative Analyst at Choice Broking.

Nifty 50 Prediction

Nifty 50 witnessed a decent recovery on January 28 and ended the session at 22,957.25, registering a gain of 0.56%.

“Nifty 50 has formed a long-legged Doji candlestick on the daily chart, reflecting indecision as the opening and closing prices remained nearly identical. The middle Bollinger Band on the hourly chart indicates resistance at 23,050, and a decisive breakout above this level could pave the way for an upward move toward the 23,280 – 23,300 zone,” said Om Mehra, Technical analyst, SAMCO Securities.

The relief rally suggests that Nifty 50 may have established a short-term bottom near the 22,800 mark, with immediate support at 22,780. However, the India VIX, also known as the fear gauge, remains above 18, indicating that elevated volatility will persist until the Union Budget is presented on Saturday, February 1, Mehra added.

Dr. Praveen Dwarakanath, Vice President of Hedged.in, also noted that the Nifty 50 formed a doji candle with a shadow equal on both sides after the gap up, indicating indecisiveness in the index.

“Nifty 50 index sold off from its high by more than 0.5%. The sell-off in the index suggests that the index is still good to be sold on the rise. Immediate resistance for the index is at the 23,100 level, and support is at the 22,850 level. The momentum indicators continue to be below the oversold region, which can be a possible reason for a dead cat bounce,” said Dwarakanath.

According to him, options writer’s data for the January monthly expiry showed increased writing of the puts at the 23,000 and above levels, indicating support for the index.

“Markets which were in overbought territory earlier, are undergoing a correction because of factors consisting of a declining rupee, falling reserves, increasing debt, and widening deficits. While the drop may appear steep, it’s a healthful adjustment that could create fresh buying opportunities and lead to stronger returns,” said VLA Ambala, Co-Founder of Stock Market Today.

Ambala expects support for Nifty 50 near 22,840 and 22,750 while resistance near 22,940 and 23,000.

Bank Nifty Prediction

Bank Nifty rallied 802.20 points, or 1.67%, to close at 48,866.85 on Tuesday forming a Morning Star candlestick pattern on the daily timeframe.

“Bank Nifty, after a 1000+ points rally during the day, was rejected from the middle of the Bollinger band, indicating weakness in the index. The index formed a small body candle, indicating indecisiveness in the direction. The momentum indicators continue below the oversold region, which can be an indication of a dead cat bounce, which can be used to sell the index on the rise,” said Dr. Praveen Dwarakanath.

Options writer’s data for the monthly expiry showed increased writing of the puts at the 49,000 and below levels and a short covering of calls below the 49,000 level, indicating mild strength in the index, he added.

According to Om Mehra, on the daily chart, Nifty Bank has formed a Morning Star pattern, signaling a potential reversal and strengthening bullish sentiment.

“Furthermore, the index has closed above the median level of 48,800, which was derived from the previous swing high and low. The daily RSI is also showing signs of recovery from oversold zones, adding strength to the ongoing uptrend,” Mehra said.

Bank Nifty’s resilience near the 47,800 – 48,000 support zone, guarded by active put writers, offers some comfort. A sustained breakout above 49,300 could attract intensified buying interest, potentially propelling the index toward the psychological 50,000 milestone. Conversely, failure to sustain above 49,000 may invite renewed selling pressure, exposing the index to a retest of lower support levels.

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.