The Indian stock market indices, Sensex and Nifty 50, are expected to open higher on Thursday amid mixed global cues.

The trends on Gift Nifty also indicate a gap-up start for the Indian benchmark index. The Gift Nifty was trading around 22,135 level as compared to the Nifty futures’ previous close of 22,034.

On Wednesday, Nifty slipped into sharp weakness from the new all-time high and closed the day lower amid profit booking.

The Sensex dropped 434.31 points to close at 72,623.09, while the Nifty 50 settled 141.90 points, or 0.64%, lower at 22,055.05.

Nifty formed a long bear candle on the daily chart that has engulfed the positive candle of previous session.

“Technically, this pattern signals a formation of bearish engulfing at the highs. Normally, such formation after a reasonable up move indicates a short term top reversal pattern for the market. The bullish chart pattern like higher tops and bottoms continued as per daily timeframe chart and Wednesday’s swing high of 22,249 could now be considered as a new higher top of the sequence,” said Nagaraj Shetti, Senior Technical Research Analyst, HDFC Securities.

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Hence, according to Shetti, short term weakness could be expected in the market.

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

Nifty OI Data

Upon scrutinizing the Nifty Open Interest (OI) data, the call side revealed the highest OI at 22,200, followed by the 22,300 strike prices. On the put side, the maximum OI was observed at the 21,800 strike price, noted Mandar Bhojane, Research Analyst at Choice Broking.

Nifty 50 Prediction

Nifty 50 halted a 6-day winning run and ended lower on February 21 after making a fresh record high of 22,249.

“The Nifty has formed a bearish engulfing pattern on the daily chart, indicating a potential pause in the ongoing rally. The momentum indicator RSI is showing a bearish crossover, signaling weakness in the near term. Immediate support is positioned at 22,000; a decisive drop below this level could lead the index towards 21,700,” said Rupak De, Senior Technical Analyst, LKP Securities.

On the upside, resistance is identified at 22,160, he added.

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Bank Nifty Prediction

The Bank Nifty index also saw profit booking on February 21 and ended 75 points lower at 47,020.

“The Bank Nifty index experienced a volatile trading session during the weekly expiry and encountered resistance around the 47,300 levels. Currently stuck in a broad range of 46,500 – 47,500, the index faces limitations on further upside until it surpasses the 47,300 mark,” said Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities.

According to Shah, the immediate support stands at 46,800, and a breach below this level could intensify selling pressure, potentially pushing the index towards 46.500.

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 taking any investment decisions.