Stock Market Today: Sensex & Nifty Poised for Bullish Reversal; Traders Eye Call Option Resistance at 26,000

The Indian stock market indices, Sensex and Nifty 50, are expected to open lower on Wednesday due to global market weaknesses. Gift Nifty trends also suggest a negative start for the Indian benchmark index.

Sensex and Nifty Predictions For July 16

For Sensex, Kotak Securities highlighted a reversal formation on both intraday and daily charts as positive. It mentioned that for short-term traders, key support is at 82,300; above this level, a pullback could continue. If Sensex surpasses its 20-day SMA at 82,900, it might reach between 83,300 and 83,500.

Analysts from HDFC Securities observed that Nifty's rebound on July 15 formed a bullish candle on the daily chart. This suggests strength and an attempt to bounce back from near the lower supports around 25,000 levels. A sustainable move above immediate resistance at 25,350 could confirm a short-term bottom reversal pattern.

What Traders Expect from Market Today?

At 07.38 AM of July 16, the most Call Options have been placed at the 26,000 level, with 1.24 crore contracts. This suggests that many traders believe the Nifty is unlikely to rise above 26,000 soon. That makes 26,000 a key resistance level, a price point where the market could face selling pressure. Other levels with a high number of Call Options are 25,500 and 25,200, which are also seen as possible resistance points.

Traders currently believe the Nifty will face resistance around the 26,000 mark and that it is less likely to move significantly higher in the short term.

Stock Market Performance Recap

On Tuesday, the indices ended with gains, breaking a four-day losing streak. The Sensex rose by 317.45 points to close at 82,570.91, while the Nifty 50 increased by 113.50 points to settle at 25,195.80.

Bank Nifty Insights

On Tuesday, the Bank Nifty index climbed by 241.30 points, closing at 57,006.65. This rise formed a bullish candle with higher highs and lows, indicating buying interest from the lower range of the past eight sessions.

Bajaj Broking Research anticipates Bank Nifty's consolidation within the range of 56,500 - 57,600 to continue. A move beyond 57,600 may lead to an extended rally towards 58,500 in upcoming weeks. Key short-term support lies between the regions of 56,000 - 55,500.

"Nifty witnessed a sharp bounce after retesting the 25,000 major support level. A close above 25,250, which is also above the 20-day EMA, could signal a bullish continuation," according to a technical outlook report of Research at Choice Equity Broking Private.

Disclaimer

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