Stock Market Today: Sensex Under Pressure, Nifty Eyes Resistance Near 25,200 as Bearish Pattern Forms

The Indian stock market indices, Sensex and Nifty 50, are anticipated to open flat on Friday, influenced by positive global cues. The Gift Nifty indicates a similar start for the Indian benchmark index, trading around 25,189, which is a premium of nearly 15 points from the previous close of Nifty futures. On Thursday, the domestic equity market indices closed lower, with the Nifty 50 ending below the 25,200 mark.

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On Thursday, Sensex dropped by 375.24 points or 0.45%, closing at 82,259.24. Meanwhile, Nifty 50 settled at 25,111.45 after losing 100.60 points or 0.40%. This performance has set the stage for today's market expectations regarding Sensex, Nifty 50, and Bank Nifty.

Sensex, Nifty Prediction

Sensex formed a bearish candle on daily charts and showed a lower top formation on intraday charts. Meanwhile, Nifty's inability to maintain upward momentum on July 17 led to a decline of about 100 points amidst choppy movement forming a bearish candle on its daily chart. A reasonable negative candle pattern was formed on the daily chart that has erased most of the gains made in the last two sessions as per HDFC Securities analysts.

Nifty Options Data: What Traders Expect Today?

According to the latest weekly options data, the 25,200 strike price has the highest number of open Call option contracts, with 56.08 lakh contracts. This means many traders are betting that Nifty may not move much above this level, making 25,200 an important short-term resistance point.

The next highest levels of Call open interest are at the 25,500 strike (55.69 lakh contracts) and the 25,300 strike (34.44 lakh contracts), which are also expected to act as resistance zones if the market tries to move higher.

In terms of fresh activity, the 25,200 strike saw the most new Call option contracts being added, with 32.05 lakh contracts added recently. This was followed by 25,500 (27.61 lakh contracts added) and 25,300 (19.07 lakh contracts added), showing traders are expecting the index to face selling pressure around these levels.

Meanwhile, the 24,800 strike saw the most Call unwinding, a decrease of 26,550 contracts which suggests that traders are no longer expecting the market to stay below this level, reducing their bearish positions there.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.