The Indian stock market indices are likely to open higher on Tuesday ahead of the presentation of Union Budget 2024 in the parliament today.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 24,550 level, a premium of nearly 30 points from the Nifty futures’ previous close.

Investors will focus on the key announcements in the Union Budget 2024-25 which will be presented today by the Finance Minister Nirmala Sitharaman.

On Monday, the domestic equity benchmark indices ended lower amid cautiousness ahead of the Union Budget 2024.

The Sensex dropped 102.57 points to close at 80,502.08, while the Nifty 50 settled 21.65 points, or 0.09%, lower at 24,509.25.

Nifty 50 formed a doji like pattern on the daily chart after recovering from early morning weakness.

“On the Daily chart, the Nifty has now bounced back from close to the 20 day SMA after the sharp fall seen last Friday. The 14-day RSI at 64.84 is however falling and remains below its 9 day EMA. This indicates that momentum is weakening. While Nifty continues to hold above the 20 and 50 day SMA ahead of the Budget, the short term trend remains down,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, further downsides are likely once the immediate support of 24,362 is broken, while any pullback rallies could find resistances at 24,595 - 24,646.

Here’s what to expect from Nifty 50 and Bank Nifty today ahead of the Budget 2024:

Nifty 50 Prediction

Nifty 50 ended with minor losses of 22 points on July 22, holding above 24,500 level.

“A small-bodied candle has formed on the daily chart following a bearish engulfing pattern, suggesting a pause before the next movement. The Relative Strength Index (14) has entered a bearish crossover and is exiting the overbought zone. The 24,550 level is likely to act as an immediate hurdle for Nifty 50,” said Rupak De, Senior Technical Analyst, LKP Securities.

He believes a move above 24,550 might induce a meaningful rally in the Nifty, while support is placed at 24,480 and a decisive fall below 24,480 might induce selling pressure in the market.

VLA Ambala, Co-Founder of Stock Market Today believes a dip-buying opportunity would be an ideal strategy for both traders and investors to leverage the current bullish trend.

“With the Union Budget 2024 scheduled today, the broader market is expected to experience volatility for 2-3 days. After analyzing the market, Nifty is expected to find support in the range of 24,250 to 24,200, and face resistance around 24,580 and 24,700 levels,” Ambala said.

Bank Nifty Prediction

Bank Nifty index outperformed and closed marginally higher by 15 points at 52,280 on Monday.

“Bank Nifty closed with a small body candlestick on the daily chart, just above its support at 52,200. Call writers were active at higher strike prices, indicating limited upside potential. Despite this, Bank Nifty managed to close above its 21-day EMA, suggesting resilience in the underlying trend,” De said.

The view for Bank Nifty remains sideways or range-bound until it breaks key levels, with support at 52,000 and resistance at 52,800, he added.

Source: livemint