The Indian stock markets are expected to open lower amid weakness in global markets as tensions escalated in the Middle East, elevated oil prices, and inflation concerns. GIFT Nifty also indicates a gap-down start, trading at 23,141 with a discount of 98 points from its previous Nifty futures close.

On Wednesday, the Sensex gained 64.42 points or 0.09% to settle at 73,983.18, while the Nifty 50 fell 27.15 points or 0.12% to close at 23,214.95. The Indian rupee opened 30 paise lower at Rs. 95.57 per dollar versus the previous close of Rs. 95.27.

Foreign institutional investors remained net sellers for the third consecutive session, offloading shares worth Rs. 2,124.98 crore on June 10, while domestic institutional investors bought equities worth Rs. 3,123.95 crore.

Sensex Outlook

The Sensex formed an Inverted Hammer-like candle on the daily chart, which suggests rejection at higher levels.

“We are of the view that 74,300 would act as an immediate resistance zone for the bulls. As long as it is trading below this level, weak sentiment is likely to continue. On the downside, the market could retest the levels of 73,600-73,500. On the upside, above 74,300, it could bounce back to 74,600. Further upside may also continue, which could lift the index to 75,000,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

The Nifty 50 formed a long upper-shadow candle on the daily chart, indicating selling pressure near higher levels and reaffirming the resistance zone of 23,450-23,500.

"Going ahead, a decisive move and sustained close above 23,425 would signal a breakout from the current consolidation range and open the door for an advance towards 23,550 and subsequently 23,830 level, which coincides with the confluence of the 20-day EMA and the upper band of the channel." Bajaj Broking Research.

"However, failure to surpass the immediate resistance zone is likely to keep the index range-bound. In such a scenario, Nifty may continue to consolidate within the 23,100-23,400 range until a directional breakout emerges."

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Bank Nifty Outlook

Bank Nifty fell 94.20 points or 0.17% to close at 55,100.30, forming a small-bodied candle with an upper wick on the daily chart. The index continues to trade above its 20-day EMA, suggesting that the broader trend remains constructive.

The recent decline is largely a profit-booking move rather than a reversal of the prevailing trend. Bank Nifty witnessed profit booking from the neckline of the double bottom breakout area of 55,500-55,600.

"A decisive move above this level would confirm renewed buying momentum and open the path towards 56,000 and 56,500 levels. On the downside, immediate support is positioned at 54,000-53,800 being the low of the current week," said Bajaj Brokinga Research.