Nifty-Sensex Today: How will the Indian stock market move on September 16?

Nifty-Sensex Today’s opening of the Sensex and Nifty 50 Indian stock market indexes is expected to be bullish due to favorable signals from global counterparts.

The Indian benchmark index is off to a good start, according to Gift Nifty’s tendencies. The Gift Nifty was trading at a premium of around 62 points from the previous close of the Nifty futures, at the 25,435 mark.

Due to profit booking at higher levels, local equities market indexes closed the day slightly down on Friday.

The Nifty 50 finished 32.40 points, or 0.13%, down at 25,356.50, while the Sensex slid 71.77 points to end at 82,890.94.

On the daily chart, the Nifty 50 created a little negative candle with a slight lower shadow.

Technically speaking, range movements that occur shortly after strong uptrends are seen as both breather patterns and upsurge continuation patterns. The lengthy bear candle from the previous week was enveloped by Nifty on the weekly chart, which indicates that the bearish engulfing pattern from the prior week was invalidated. This is a favorable development, as bearish pattern negations often lead to greater upsides, according to HDFC Securities Senior Technical Research Analyst Nagaraj Shetti.

According to him, the Nifty 50’s short-term trend is still bullish, and a steady rise over 25,400 levels can soon push the index up to the next upside target of around 25,800.

What to anticipate from Bank Nifty and Nifty 50 today is as follows:

Nifty 50 Forecast

On September 13, the Nifty 50 steadied and ended the day down 32 points amid erratic trading.

The rising trendline on the daily chart represented resistance for the Nifty 50 on the upper end. The RSI has reached a negative crossing on the lower timeframes, indicating an early warning sign of a possible bearish momentum reversal. The trend could continue to move sideways in the foreseeable future, according to Rupak De, Senior Technical Analyst at LKP Securities.

He claims that the Nifty 50 has resistance above 25,460 and support between 25,150 and 25,200.

Only twice in Nifty’s price history has the RSI crossed over 82, as reported by VLA Ambala, co-founder of Stock Market Today. In the past, after similar events, we have seen intense selling pressure at benchmark levels, resulting in a subsequent collapse of 40–55%. There are no indications of a reversal at this time. Either way, we have to be on guard.

“In the most recent session, the benchmark index Nifty had a flat trading day after a new all-time high of 25,430.5. It developed a “Hanging Man” candlestick pattern on the daily timeframe and closed below the previous day’s level before the end of the day, according to Ambala.

According to Ambala, in this scenario, the index may begin to take profits if it closes below 25,250, but a move over 25,530 might signal the start of a new short-term rebound.

Institutional investors’ domestic liquidity is driving the market as a whole. Therefore, I suggest exercising caution, particularly in situations when foreign institutional investors are acting as net sellers. Taking these findings into account, I anticipate that in the next session, the Nifty will find support between 25,230 and 25,150 and encounter resistance between 25,480 and 25,550,” Ambala said.

Forecast for the Bank Nifty

The Bank Nifty index finished Friday 165.65 points, or 0.32%, higher at 51,938.05. It outperformed the headline indexes.

“Bank Nifty is still underperforming, although certain firms are doing well. As a result, any increase in the variety of banking stocks might raise the index. According to Shrey Jain, Founder & CEO of SAS Online, the resistance for the Bank Nifty is situated between 52,200 and 52,300. If it rises over that level, it is set at 53,000.

Jain thinks that any decline to 51,600–51,400 will serve as solid support on the down side.

The option writer data for the current week’s expiration and the September end expiry, according to Praveen Dwarakanath, Vice President at Hedged.in, indicates higher call and put writing, signaling a stop at the current levels.

With Thursday’s advance, Bank Nifty was trading on the upper Bollinger band; nevertheless, it was unable to sustain its rise, suggesting that the index was not particularly strong even after a climb. Despite the fact that every momentum indicator on the daily chart is indicating a rise, the 52,000 level serves as barrier for the time being. According to Dwarakanath, “a breach of this level can take the index to its immediate resistance at levels 52,700 and 53,500.”