The Indian stock market’s benchmark indices, Sensex and Nifty 50, are expected to open flat to negative on Thursday, October 31. This comes after the U.S. stock market closed lower on Wednesday. Among major U.S. indices, the Dow Jones Industrial Average fell by 0.22%, and the tech-heavy Nasdaq dropped by 0.56%.

GIFT Nifty trends also suggest a sideways to negative start for Indian markets. GIFT Nifty was trading around the 24,303 level, which is about 3 points lower than the previous close of Nifty futures.

On Wednesday, both Sensex and Nifty 50 ended the day down by half a percent. The Sensex slipped below the 80,000 mark, plunging 426.85 points or 0.53% to close at 79,942.18. The Nifty 50 settled 126.00 points lower, or 0.51%, at 24,340.85.

The Nifty 50 formed a ‘Doji’ pattern on the daily chart, indicating uncertainty among investors.

Expert Insights:

Rajesh Bhosale, Equity Technical Analyst at Angel One, commented:

  • The intraday range is forming a symmetrical triangle, suggesting that a decisive breakout from key levels will drive momentum.
  • With the monthly expiry, 24,500 stands as a tough resistance level.
  • A sustained move above 24,500 could push the index toward 24,600 and beyond.
  • On the downside, 24,200 followed by 24,100 are crucial support levels.
  • Traders should monitor these key levels and plan their trades accordingly.

For the F&O expiry session, Bhosale expects increased volatility and adjustments in many individual stocks. He advises traders to focus on stock-specific opportunities and be selective in their choices.

Nifty 50 Prediction

The Nifty 50 failed to stay above its resistance zone of 24,500 and ended 126 points lower on October 30.

Aditya Agarwal, Head of Derivatives & Technical Analysis at Sanctum Wealth, observed:

  • Short-term charts show the index is in the oversold zone, and minor short-covering moves might occur from current levels.
  • On the higher side, the index will face stiff resistance around the 24,480 – 24,520 range.
  • Only a close above this range will trigger another round of short-covering, potentially taking it to 24,680 / 24,740 levels.
  • On the lower side, immediate support is expected around 24,280 / 24,240, where buying interest may emerge.

Rupak De, Senior Technical Analyst at LKP Securities, believes:

  • The market sentiment may remain sideways as long as Nifty 50 stays within the range of 24,250 to 24,500.
  • A decisive breakout from this range is likely to set the market’s direction.
  • Supports are placed at 24,250 and 24,000.
  • Resistances are seen at 24,500 and 24,750.

Bank Nifty Prediction

The Bank Nifty index underperformed on Wednesday, closing 513.20 points or 0.98% lower at 51,807.50.

Aditya Agarwal noted:

  • After outperforming Nifty 50 for the last three days, the Bank Nifty saw profit booking ahead of its monthly expiry, closing with a 1% loss.
  • Despite this, the overall structure of Bank Nifty remains positive.
  • It will find support around the 51,400 / 51,200 range.
  • Dips toward these levels can be used to enter fresh long positions.
  • On the higher side, 52,200 / 52,500 will act as a strong supply zone for the index.

Key Takeaways for Traders:

  • Monitor Critical Levels: Keep an eye on the support and resistance levels mentioned by experts.
  • Expect Volatility: With the monthly expiry, heightened volatility is anticipated.
  • Stock-Specific Opportunities: Focus on individual stocks and be selective in trading choices.
  • Global Cues Matter: Pay attention to global market trends, especially movements in the U.S. stock market.