It is anticipated that Tuesday will see the Indian share markets open up flat due to the influence of mixed signals from around the world as well as the cautious attitude of investors. The GIFT Nifty shows that it will open close to the flat line by trading at about 26,329, with a small gain of 6 points against the closing price on Nifty Future.

In the end markets on Monday, the Indian Bourses witnessed a little profit-taking. The Sensex decreased by 64.77 points (-0.08 per cent) to 85,641.90, while the Nifty 50 fell 27.20 (-0.10 per cent) to 26,175.75.

Sensex Outlook

The Sensex has established a bearish candle on the daily time frame due to having cooled off after gaining up to this point.

The two key support areas are 85,500-85,000, and the resistance level will remain strong for the 86,000-86,200 area. A break above the resistance will give way to additional movements higher. Some analysts have cautioned that if 85,000 is broken below, it would detract from the upside trend.

Nifty 50 Outlook

The Nifty 50 has made a bearish candle on the daily charts with this latest price action, indicating the potential for a pause for the uptrend to continue.

The next immediate level of support will likely be the 26,120 area, followed by 26,000. A breakout above 26,300 would put the index on a path to reach areas of 26,450-26,600.

Options data indicate that a significant amount of call writing was done at the 26,250 strike price area, while significant put interest is being developed at the 26,150 strike area, indicating that range-bound activity will likely occur over the next few weeks. A close above the 26,300 area is needed so that prior bullish momentum may be regained for the Nifty 50 index.

Bank Nifty Outlook

The Bank Nifty closed at 59,681.35, a decline of 0.12% on Monday. On the daily chart, the index formed an Opening Marubozu (Red Candle), signalling selling pressure at elevated levels. 

As long as the index trades below 60,110, the upside is expected to remain restricted.

The major resistance level is at 60,000-60,100, and if the index manages to close above this level, a rally towards 60,600 is possible. Key support levels are seen at 59,400-59,000.

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Global Cues & Rupee Watch

The overall movement of the broader markets remained largely steady on Monday, with limited movement in midcaps and smallcaps.  Meanwhile, the Indian Rupee touched a new all-time low due to weak trade flows and slow progress in negotiations between India and the US.

Investors are waiting for the global manufacturing PMIs release today, followed by important Eurozone CPI and US JOLTS data tomorrow.

Analysts anticipate the Indian Markets to remain range-bound until more clarity on the interest rate cuts and developments regarding international trade are established.