Anticipating Stock Market Indices on October 10: Nifty 50 and Sensex Outlook

Indian Stock Market Indices Poised for Higher Opening Amidst Geopolitical Concerns

The Indian stock market is expected to begin the day on a positive note, following the lead of Asian markets. However, investors remain cautious due to the ongoing Israel-Palestine conflict. Gift Nifty trends suggest a gap-up start for the benchmark index, with Gift Nifty trading around 19,615 levels compared to the previous day's close at 19,522.

In contrast, the domestic equity indices, Sensex and Nifty 50, experienced a sharp decline on the previous trading day, ending a two-day winning streak. Geopolitical concerns surrounding the Israel-Palestine conflict weighed on investor sentiment, resulting in the Nifty 50 closing 141 points lower at 19,512.35, and the Sensex ending 483 points down at 65,512.39.

Analyzing the Nifty 50's technical chart, a small negative candle with an upper shadow has formed. According to Nagaraj Shetti, Technical Research Analyst at HDFC Securities, this pattern signifies a lower top formation, indicating potential weakness in the short term.

However, it's worth noting that the bullish hammer candle pattern from the previous week, as seen on the weekly timeframe chart, remains intact, providing a glimmer of positivity.

Here's what to anticipate from Nifty 50 and Bank Nifty today:

Nifty 50 

The Nifty 50 faced a decline as investors adopted a risk-off approach in response to Middle East geopolitical tensions. Rupak De, Senior Technical Analyst at LKP Securities, highlights that the 200SMA on the hourly chart (located around 19,670) served as significant resistance during the previous trading session, contributing to the index's decline. On the downside, support is expected in the range of 19,480 to 19,430. De suggests that the market may continue to favor a 'sell on the rise' sentiment until Nifty surpasses the 19,700 level.

Bank Nifty

 The Bank Nifty experienced selling pressure and closed 474 points lower at 43,887 on the previous trading day. De observes that the Bank Nifty remains below the critical 44,000 level, signaling ongoing weakness in the short term. Immediate support is identified at 43,800 - 43,500 on the lower end, while resistance is positioned at 44,000 on the higher end.

Investors should remain vigilant in this uncertain market environment, keeping an eye on geopolitical developments while making informed trading decisions.