Stock market prediction for tomorrow: Sensex, Nifty, Nifty Bank key levels for 24th Feb

Benchmark indices Sensex and Nifty on Monday saw selling at higher levels, as the indices settled half-a-per cent higher on Monday post a solid start. Analysts said the 20-day simple moving averages for the indices would act as an immediate reference point for day traders going ahead. 

Shrikant Chouhan, Head of Equity Research at Kotak Securities said the market witnessed range-bound activity post a strong start. On the lower side, Chouhan said Sensex and Nifty took supports near the 20-day SMA at 25,600 level and 83,000 levels. At close, Sensex stood at 83,294.66, up 479.95 points or 0.58 per cent. Nifty settled the day at 25,713, up 141.75 points or 0.55 per cent.

Sensex, Nifty outlook

"We believe that the 20-day SMA or 25,600 for Nifty and 83,000 for Sensex will act as an immediate reference point for day traders. As long as the market is trading above this level, the bullish momentum is likely to continue. On the higher side, 25,800/83600 would be the key resistance area for the bulls. A successful breakout of 25,800/83600 could push the market up to 25,950–26,000/84,000-84,200," Chouhan said.

Chouhan said a move below 25,600 on Nifty and 83,000 on Senex would hurt sentiment. If the market falls below these levels, the two indices are seen retesting of 25,500–25,450 and 82,700-82,500 levels, he warned

Ajit Mishra – SVP, Research, Religare Broking said the ongoing tussle between the bulls and the bears index reflects prevailing uncertainty on the global front, as domestic cues largely remain muted. He advised market participants to focus on stock selection and trade management, preferring banking, auto, metal and energy counters for long positions. The IT sector still appears vulnerable to further downside, he said.

Sideways trading?
Rupak De, Senior Technical Analyst at LKP Securities said following a gap-up start, Nifty retraced and slipped back below the 50-DMA due to a lack of buying interest at higher levels. A flow of contradictory news kept the index confined roughly within the band of the 21-EMA (25,641) and the 50-DMA (25,737), he said.

"India VIX remained elevated, while the index continued to hold above the 200DMA. The daily RSI remained indecisive despite a positive crossover. In the short term, the index may remain sideways unless it moves above 25,750 or falls below 25,600," De said.

Nifty Bank outlook

Bank Nifty formed a high wave candle with small real body and shadows in either direction signaling consolidation amid stock specific action. PSU banking stocks continues to outperform the private banking stocks.

Nifty Bank outlook
In the case of Nifty Bank, the bias remained positive,  said Bajaj Broking Research. This brokerage believes traders any dip should be sen as buying opportunity, with the short-term support seen at 60,500-60,200 levels. This is being the confluence of the 20-day EMA and the key retracement of previous up move. 

 "In the near-term, index is likely to trade in the range of 60,000-61,750. A decisive move beyond this range could trigger fresh directional momentum," the brokerage said.