The Indian stock markets are likely to open lower amid escalation in the US-Iran conflict and uncertainty over the Strait of Hormuz lifted crude oil prices higher and renewed inflation concerns. GIFT Nifty also indicates a gap-down start, trading at 24,025 with a discount of 198 points from its previous Nifty futures close.

On Friday, the Sensex gained 827.57 points or 1.08% to close at 77,569.39, while the Nifty 50 advanced  244.10 points or 1.02% to finish at 24,206.90.

The broader markets outperformed, with the Nifty Midcap 100 rising 1.4% and the Nifty Smallcap 100 advancing 1.5%. 

Foreign institutional investors (FIIs) extended their buying streak in Indian equities on July 10, purchasing shares worth Rs. 2,603.72 crore, while domestic institutional investors (DIIs) also remained net buyers with an inflow of Rs. 2,019.68 crore.

Sensex Outlook

Technically, the Sensex ended the week on a firm note, extending its recovery and maintaining a constructive technical structure as it closed above 77,500.

The market found support near 76,100 and bounced back sharply. The short-term market texture is volatile and non-directional. On the downside, the 77,000 would act as a key support zone.

"An uptrend may continue. On the higher side, the market could move up to 78,000-78,300. Upside may continue, potentially lifting the market to/78,700. On the flip side, if the market falls below 77,000, it could retest 76,100. Below 76,100, the chances of hitting 75,600-75,500 would increase," said Amol Athawale, VP of Technical Research at Kotak Securities.

Nifty 50 Outlook

Nifty 50 continues to remain in a broader consolidation phase despite maintaining its upward bias. The index has formed a high-wave candle on the weekly chart, reflecting volatility during the week but also indicating that buyers continue to defend lower levels.

"Broader market to extend outperformance with Nifty midcap 100 already at an all-time high, we expect Nifty small cap index also to rally to a fresh all-time high, The Index has immediate support at 23,800 levels being almost identical lows of the last 4 weeks," said Bajaj Broking Research.

The brokerage expects the Nifty to remain within the 23,800-24,350 range in the near term. A sustained move above 24,350 could strengthen bullish momentum and push the index towards 24,600, followed by 24,800 over the coming weeks.

However, if geopolitical tensions intensify and the index falls below 23,800, selling pressure could increase, dragging the Nifty towards the 23,600-23,400 zone.

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Bank Nifty Outlook

On Friday, Bank Nifty rose 793.45 points or 1.39% to close at 58,045.90. Last week, Bank Nifty rose 0.19% and formed a Dragonfly Doji on the weekly chart, reflecting strong buying interest at lower levels.

The banking index is expected to consolidate in the 56,500-58,700 range in the near term.

"A weakness below Wednesday's low 56,550 will open downside towards the key short-term support of 55,500-55,000 levels. On the higher side only a move above 58,700 being the last swing high will signal resumption of the up-move towards 59,200 and 60,000 level in the coming weeks, being the 138.2% and 150% external retracement of the previous decline from 57,456 to 52,783," said Bajaj Broking.