Stock market today: What to expect from Nifty, Sensex, Bank Nifty in trade on September 20

The Indian stock market indices are likely to open lower Wednesday following weak global cues ahead of the interest rate decision by the US Federal ReserveThe trends on Gift Nifty also indicate a gap-down start for the Indian benchmark index. The Gift Nifty was trading lower at around 20,080 level as compared to the Nifty futures’ Monday’s close of 20,170.

On Monday, the benchmark equity indices, Sensex and Nifty ended lower ahead of key central bank meetings while concerns over global economic growth persisted.

The Sensex fell 241.79 points, to close at 67,596.84, while the Nifty ended 59.05 points lower at 20,133.30.Nifty formed a small negative candle on the daily chart with minor upper and lower shadow.

“Technically, the current chart pattern indicates 'Bearish Tri-Star' type candle pattern (three candle top reversal pattern), but not a classical one. Further weakness from here could confirm short term top reversal for the Nifty at 20,222 levels," said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

He believes the underlying short term trend of Nifty is placed at the verge of reversal on the downside. A decisive move below the immediate support of 10 day EMA (exponential moving average) at 19,940 levels could confirm further weakness for the near term, however, sharp selling momentum is ruled out, he said.

Here's what to expect from Nifty and Bank Nifty today:The Nifty index has been consolidating within a broad range, with notable call writing activity observed at higher levels. 

“This suggests that market participants are cautious and have been selling call options to hedge against potential downward movements. The sideways trend in the index is expected to persist in the upcoming trading sessions. This is attributed to the anticipation of the outcome of the US Federal Reserve meeting, which is a significant event that can impact global financial markets," said Kunal Shah, Senior Technical & Derivative analyst at LKP Securities.

According to Shah, the index has support at the 20,100 level and resistance at 20,200. A break on either side of this range is likely to lead to trending moves, with potential implications for market direction, he said.

The Bank Nifty index witnessed profit booking at higher levels and ended 252 points lower at 45,980 on Monday, failing to surpass 46,300 level. “The PSU bank sector emerged as a clear outperformer in the index. This outperformance is expected to continue in the near term, potentially driven by positive sentiment or specific factors affecting PSU banks," Shah said.

As per Shah, the Bank Nifty has an immediate support zone in the range of 45,800 to 45,700, which, he believes, is a crucial level, and a breach below it could trigger further selling pressure in the index. “Despite the profit booking, the overall sentiment for the Bank Nifty remains bullish, as long as the mentioned support levels are held on a closing basis. This suggests that there is still confidence in the upward trajectory of the index," said Shah.

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