The Indian stock markets are expected to remain volatile as investors are cautious over the US-Iran peace deal. GIFT Nifty indicates a gap-down start, trading at 23,882 with a discount of 114 points from its previous Nifty futures close.
The markets will resume today after Bakri Eid holiday on Thursday.
On Wednesday, the Sensex declined 141.90 points or 0.19% to close at 75,867.80, while the Nifty 50 fell 6.55 points or 0.03% to settle at 23,907.15.
The Indian rupee opened higher at Rs. 95.57 per dollar on Friday versus Wednesday's close of Rs. 95.69.
Foreign institutional investors (FIIs) net sold shares worth Rs. 1,043 crore, while domestic institutional investors (DIIs) net bought shares worth Rs. 3,821 crore on May 27.
The Sensex formed a small candle on the daily chart, which indicates indecision among investors.
“The short-term market texture is positive, but a fresh uptrend rally is possible only after the dismissal of 76,200. Post a 76,200 breakout, the market could move up to 76,800-77,000. On the flip side, for Nifty, below the 75,700, selling pressure is likely to accelerate. Below this level, the market could retest the 75,200-75,000 levels," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Nifty 50 recently witnessed a breakout above the 23,800 zone on the daily chart, indicating improving momentum. However, profit booking has been visible during the last two sessions following the recent rally.
“On the derivatives front, both call and put writers remained active, with significant call writing at the 24,000 strike establishing it as a strong resistance zone, while aggressive put writing at 23,900 indicates immediate support. Overall, technical and derivative data suggest a sideways to mildly positive trend for the upcoming sessions. On the levels front, 23,800 is likely to act as immediate support, while 24,000-24,100 remains a strong resistance zone. Positional support for the index is placed at 23,650 levels,” said Vatsal Bhuva, Technical Analyst at LKP Securities.
On Wednesday, Bank Nifty fell 239.05 points or 0.43% to close at 54,853.85, forming a small-bodied bearish candle with an upper wick on the daily chart, indicating weakness at higher levels.
"Going ahead, the immediate resistance for Bank Nifty is placed in the 55,200-55,300 zone. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 55,700, followed by 56,100 in the short term. On the downside, the immediate support for Bank Nifty is placed in the 54,400-54,300 zone," said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.
The RSI has witnessed a mild correction, further indicating the absence of strong momentum.
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