The Indian markets are likely to open lower as mixed cues from global markets and higher oil prices in the wake of rising tensions in the Middle East are expected to weigh on sentiment. GIFT Nifty also indicates a gap down start, trading at 23,546 levels, discounting 98 points from the previous Nifty futures close.

On Friday, the Sensex dropped 160.73 points or 0.21% to settle at 75,237.99, while the Nifty 50 fell 46.10 points or 0.19% to close at 23,643.50.

The rupee hit a new intra-day low of Rs. 96.14 on Friday, against the US dollar amid higher crude oil prices and dollar demand increasing.

The broader indices underperformed with the Nifty Midcap index and Nifty Smallcap index down 2.20% and 4.56% respectively, signifying the general trend of profit booking.

Provisional NSE data reveals that foreign institutional investors (FIIs) were net buyers turned net buyers by spending Rs. 1,329.17 crore on Friday, while domestic institutional investors (DIIs) turned net sellers with Rs. 1,958.82 crore on a net-net basis. 

Sensex Outlook

Technically, the Sensex trades below its short-term moving averages on the weekly chart, which is largely negative.

However, on the weekly chart, the Sensex trades below its short-term moving averages, which is a sign of a negative trend. 

The short-term market outlook remains weak, but a pullback is likely to continue if it manages to trade above 75,000. On the higher side, the 75,800 will be a key level to watch. A move above 75,800 could lead to a test of the 77,000-77,300. On the downside, a fresh sell-off is possible only if the index breaks below 75,000. Below this level, it could retest 74,500," said Amol Athawale, VP of Technical Research at Kotak Securities.

Nifty 50 Outlook

"The Nifty 50 has once again tested the recent breakdown zone, indicating that bears continue to maintain control at higher levels. As long as Nifty trades below the crucial 23,850 resistance mark, the overall setup favors a "Sell on rise" approach for the coming sessions," Dr. Ravi Singh said.

He added, "On the downside, immediate support is seen around the 23,400-23,450 zone. A decisive break below this range may open the doors for further weakness towards the 23,100 level.” 

Positive sentiment in the market is expected to be held in check as consolidation and negative bias are likely to prevail, with continued selling pressure likely to cap bullish momentum. 

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Bank Nifty Outlook

On Friday, Bank Nifty closed 418.60 points or 0.77% lower at 53,710.35. The index plunged 2.89% for the week and formed a large bearish candle, which is a sign of steady selling pressure.

Dr. Ravi Singh said, "The Bank Nifty ended this week on a highly bearish note, plunging roughly 2.89% as heavy selling pressure dragged the index down. Technically, the index has weakened significantly and is now trading below all its key short- and long term moving averages, including the 21 day, 55 day, 100 day, and 200 day EMAs, signaling a strong shift in momentum toward the bears."

He further noted, "For the coming week, immediate resistance is placed at the 54,400-54,500 level. As long as prices continue to trade below this crucial zone, the overall market sentiment remains under intense pressure. On the downside, immediate support is placed at 53,100. A decisive slide below this floor is critical, as it may trigger a sharper correction and move the index further down toward the 52,500 mark."