The Indian stock markets are expected to open on a muted note amid mixed global cues. GIFT Nifty also indicates a flat open, trading at 24,332.5 with a discount of 22.5 points from its previous Nifty futures close.

On Friday, the Sensex rose 261.79 points or 0.34% to settle at 77,763.91, while the Nifty 50 advanced 95.15 points or 0.39% to finish at 24,270.85.

The broader indices underperformed, with the Nifty midcap index ending marginally lower while the smallcap index finished on a flat note.

The Indian rupee opened flat at Rs. 95.23 per dollar on Monday against Friday's close of Rs. 95.22.

Foreign institutional investors (FIIs) turned net buyers in Indian equities on July 3, purchasing shares worth Rs. 1,355.33 crore, while domestic institutional investors (DIIs) emerged as net sellers with Rs. 1,953.89 crore.

Sensex Outlook

Technically, the Sensex rose around 1% last week, forming a bullish candle on weekly charts, with a higher bottom formation, which is largely positive.

“We are of the view that the short-term market texture is positive, but for traders, the ideal strategy would be to buy on dips and sell on rallies. On the downside, 77,300 and 76,700 would act as key support zones, while 78,400-79,000 would be key resistance areas for the bulls. However, below 76,700, market sentiment could change. A fall below 76,700 could retest levels of 76,100-75,900,” said Amol Athawale, VP Technical Research, Kotak Securities.

Nifty 50 Outlook

Nifty 50 has strengthened its short-term trend after closing above last month's high. The index has now advanced for three consecutive sessions and finished above the important 24,261 level. Although Friday's trading formed a bearish candle as the market gave up some gains before closing, the broader short-term trend remains positive. 

"Key observation in the daily chart is that the index during current week has generated a bullish crossover of 20 and 50 days EMA, highlighting continuation of the positive momentum. In the coming session, Friday's gap area will act as immediate support; holding above the same will signal extension of the up move towards 24,380 and 24,500 levels," said Bajaj Broking Research.

The brokerage expects the Nifty to gradually move towards the 24,500-24,600 zone in the near term. If the index decisively crosses 24,600, it could target 24,800.

On the downside, immediate support is seen near 24,050, while a stronger support zone is placed between 23,800 and 23,900.

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Bank Nifty Outlook

On Friday, Bank Nifty declined 93.15 points or 0.16% to close at 57,938.50, forming a small bearish candle. For the week, the index ended with a loss of 0.41% and formed a small bearish candle on the weekly timeframe with a long lower shadow, highlighting indecisiveness.

"Going ahead, a move above last week's high of 58,400 will open further upside towards 59,200 and 60,000 levels in the coming weeks, being the 138.2% and 150% external retracement of the previous decline from 57,456 to 52,783. Failure to move above last week's high is likely to keep the index consolidating within the 57,000-58,400 range," said Bajaj Broking Research.

The brokerage identified the 57,000-56,800 region as the key support area for Bank Nifty. It added that the broader outlook for banking stocks remains positive and any short-term consolidation could offer investors an opportunity to accumulate.