The Indian stock market opened higher amid easing crude oil prices and hopes of de-escalation in the Middle East conflict, boosting investor sentiment. Nifty 50 opened 141.45 points higher at 23,582.25 from the previous day’s close, while Bank Nifty started at 55,435.80, up 433.6 points. Sensex edged up by 595.87 points to 76,288.65.

The Indian rupee opened at Rs. 94.66 per dollar on Tuesday compared with the previous close of Rs. 94.90. Foreign institutional investors (FIIs) extended their buying streak for the second consecutive session, purchasing equities worth Rs. 3,114 crore on November 2. Meanwhile, domestic institutional investors (DIIs) offloaded equities worth Rs. 392 crore. 

Sensex Outlook

Sensex opened with a gap up and maintained positive momentum throughout yesterday, forming a bullish candle on the daily chart, indicating further upside from current levels. The short-term market trend is positive, but buying on dips and selling on rallies would be the ideal strategy for day traders. 

On the downside, 76,000 and 75,800 would act as a key support zone. On the upside, the uptrend could continue towards 76,400-76,500. However, below 76,000, the market may lose short-term momentum and retest 75,600-75,500.

Nifty 50 Outlook

Nifty 50 closed above its 50-day EMA for the first time since 25 August and is now trading above both its 20-day and 50-day EMAs. Broader markets extended their recovery, with Nifty Midcap 100 advancing 1.19% and Nifty Smallcap 100 gaining 0.71%, reflecting improving participation. 

Market breadth remained positive, with 391 stocks closing higher against 105 declining within the Nifty 

500 universe. The 23,450-23,480 zone will act as immediate support. On the upside, 23,600 remains the immediate hurdle. A decisive breakout above this level could trigger further short-covering and extend the ongoing recovery towards 23,750.

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Bank Nifty Outlook

Bank Nifty extended its recovery, with buying interest visible across banking stocks. The chart shows bullish RSI divergence, indicating improving underlying momentum and a possible reduction in selling pressure. The 55,150-55,000 zone is likely to act as the immediate support area, with the 55,000 strike having the highest Put open interest concentration among the immediate support strikes. 

A sustained move below 55,000 could increase selling pressure and drag the index towards 54,800 and 54,600. On the upside, 55,600 remains the immediate hurdle, followed by 56,000. The 56,000 strike has the highest Call open interest concentration after 55,000, indicating another important resistance zone.