Nifty 50, Sensex today: What to expect from Indian stock market in trade on September 18 after US Fed rate cut

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open higher on Thursday, after the US Federal Reserve announced an interest rate cut.

The trends on Gift Nifty also indicate a positive start for the Indian benchmark index. The Gift Nifty was trading around 25,512 level, a premium of nearly 88 points from the Nifty futures’ previous close.

The US Federal Reserve decided to cut the benchmark interest rate by 25 basis points to a range of 4% to 4.25%. The Fed Chair Jerome Powell projected two more quarter-percentage-point cuts this year.

On Wednesday, the domestic equity market ended higher, with the benchmark Nifty 50 closing above 25,300 level.

The Sensex surged 313.02 points, or 0.38%, to close at 82,693.71, while the Nifty 50 settled 91.15 points, or 0.36%, higher at 25,330.25.

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

Sensex Prediction

Sensex saw a gap-up opening, indicating strong bullish sentiment, and a double bottom breakout was observed, a key bullish technical signal.

“The short-term market outlook remains positive. We believe that 82,500 and 82,200 are key support zones for trend-following traders. As long as Sensex trades above these levels, the uptrend is likely to continue. On the higher side, the index could move up to 83,000 – 83,200. Conversely, below 82,200, traders may consider exiting their long positions,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

Om Ghawalkar, Market Analyst, Share.Market (PhonePe Wealth) believes that key support for Sensex lies in the 81,800 – 82,000 range, while resistance is at 83,000 – 83,200.

“The bullish trend is expected to continue as long as Sensex remains above 82,700; a break below this level could signal a potential downside risk,” said Ghawalkar.

Nifty 50 Prediction

Nifty 50 index formed a bull candle with a higher high and higher low and a bullish gap below its base, signaling extension of the up move.

“A reasonable bull candle was formed on the daily chart that placed at another hurdle of previous opening downside gap of 11th July. Technically, the market is in an uptrend continuation pattern and the resistances have started to surpass one after another. Hence, one may expect further upside in Nifty 50 from the current hurdle in the coming sessions,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the short-term trend of the market continues to be positive and he expects Nifty 50 to advance towards the next upside of 25,600 levels in the near term. Immediate support is placed at 25,150 levels.

Dr. Praveen Dwarakanath, Vice President of Hedged.in noted that the Nifty 50 has broken the resistance at the 25,150 level and is strongly moving up towards its next resistance at the 25,450 level.

“The momentum indicators have shifted gears on the upside, indicating the momentum to continue further upside. The ADX DI+ line is sloping upward, indicating the upside potential for the index from the current levels,” said Dwarakanath.

Om Ghawalkar said that the market bias is cautiously positive, provided the Nifty 50 holds above the 25,300 level. Key support levels to watch for the Nifty 50 are 25,150 and 25,200, with resistance expected around 25,450 and 25,500.

Bank Nifty Prediction

Bank Nifty index rallied 345.70 points, or 0.63%, to close at 55,493.30 on Wednesday, forming a strong bull candle with a higher high and higher low, signaling extension of the pullback for the 11th consecutive sessions.

“On the technical front, Bank Nifty is trading above its 20-day and 50-day EMA, signalling an improving structure. Importantly, prices are now trading above the midline of Bollinger Bands, which indicates that the short-term trend has turned positive. Momentum indicators are also turning supportive. The RSI has moved closer to 60, showing improving buying strength, while ADX indicates DI+ leading DI–, hinting that trend reversal is underway,” said Sudeep Shah, Head – Technical Research and Derivatives at SBI Securities.

Looking at key levels, he added that the 55,600 – 55,700 zone will act as an immediate resistance, and a sustained move above 55,700 can lead to continuation of the up move in the Index towards 56,200. On the downside, the zone of 55,300 – 55,200 is likely to act as a support, while any throwback towards this zone can provide buying opportunities on dips.

Hrishikesh Yedve, AVP Technical and Derivative Research, Asit C. Mehta Investment Interrmediates Ltd noted that on the daily scale, Bank Nifty sustained above the trend line resistance as well as the 34-DEMA hurdle and formed a big bullish candle, indicating continued strength.

“Thus, Bank Nifty index will attempt to test the 56,000 – 56,160 levels in the near term, where major resistance is placed. Immediate support for the Bank Nifty is seen near 55,010, where the 34-DEMA is placed, followed by 54,500. Thus, short-term traders are advised to adopt a buy-on-dips strategy in Bank Nifty,” said Yedve.

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 making any investment decisions.