Sensex, Nifty prediction for tomorrow: Key levels, trading strategy & more - Will stock market extend gains on Thursday?

Domestic equity benchmarks witnessed a turbulent ride on Wednesday, surrendering early morning gains before eventually closing in the green. Supported by buying interest in IT and auto sectors.

Global tech rebounds and stabilising global cues brought some cheer, but intermittent profit booking and the absence of any fresh positive trigger kept the overall mood cautious, said Ajit Mishra, SVP of Research at Religare Broking Ltd.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, observed that despite a strong opening, the intraday rally was met with profit booking at higher levels, a trend he views as largely negative.

"The Nifty remained volatile during the day, staying in line with the sentiment of the past few sessions," noted Rupak De, Senior Technical Analyst at LKP Securities. 

Hariprasad K, a SEBI-registered research analyst and founder of Livelong Wealth, pointed out that although Nifty gapped up past the immediate 25,500 resistance, sharp profit booking erased early gains, keeping the momentum weak.

Ponmudi R, CEO of Enrich Money, said that intraday price action shows selling on rallies, keeping the broader tone range-bound with a slight negative undertone.

Key levels

Support: Hariprasad said that a decisive break below this could drag the index toward the major support at 25,000, which is backed by a massive 1.35 crore put open interest. De places immediate support slightly lower at 25,300, adding that as long as this level is maintained, the possibility of a rally remains intact. For the Sensex, Chouhan noted that continued weak sentiment could see the index slip toward the 82,000–81,800 support levels.

Resistance: On the upside, Chouhan highlights the 25,600 mark, or 82,500 for Sensex, as an immediate resistance zone for day traders. He added that if the market moves above this level, the pullback could extend toward the 82,800–83,000 zone for the Sensex. 

Ponmudi sees the 25,600–25,650 zone as a strong resistance cluster, suggesting that a breakout above 25,650 is needed to trigger short covering and push gains toward the 25,800–26,000 region.

Hariprasad believes the market will remain directionless in the near term unless Nifty firmly breaks out of its 25,350–25,700 range.