Nifty 50, Sensex today: What to expect from stock market indices in trade on October 9

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Israel and Hamas erupted over the weekend which is likely to weigh on the market sentiment. The domestic benchmark indices ended over half a percent higher on Friday after the Reserve Bank of India (RBI) maintained status quo on policy rates and stance. The Nifty 50 closed at 19,653.50, up 108 points, while Sensex closed 364 points higher at 65,995.63.

Nifty 50 formed a small positive candle on the daily chart with minor upper and lower shadow. As per weekly chart, Nifty 50 formed a small bullish candle with a long lower shadow. “This indicates a formation of a bullish hammer type candle pattern at the support of 20 week EMA (exponential moving average).

Another 10 week EMA support has been regained after violating below it in the intra-week," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. He believes the short term trend of the Nifty 50 has turned positive and the overall positive chart pattern indicates next overhead resistance for the Nifty around 19,800 levels for the coming week. Also Read: 5 things that changed for the stock market over the weekend - Gift Nifty to Israel-Hamas war Here’s what to expect from Nifty 50 and Bank Nifty today: Nifty ended the week with a modest gain despite the selling in the banking sector.

“Overall, sentiment is expected to stay positive as long as it maintains above the critical support level of 19,500, as put writers are likely to offer support at this level. On the upside, resistance is positioned around 19,750-19,800," said Rupak De, Senior Technical analyst at LKP Securities. A strategy of buying on dips would be favorable as long as it holds above 19,500, he added.