The Indian stock markets are expected to open on the negative side, tracking weak signals from global markets amid concerns of escalating tensions between US-Iran. GIFT Nifty also indicates a gap-down start, trading at 24,310 with a discount of 102 points from its previous Nifty futures close.

On Thursday, the Sensex fell 114 points or 0.15% to settle at 77,844.52, while the Nifty 50 rose 4.30 points or 0.02% to close at 24,326.65.

On May 7, foreign institutional investors (FIIs) net sold shares worth Rs. 341 crore, and domestic institutional investors (DIIs) net bought shares worth Rs. 441 crore.

The Indian rupee also opened lower by 33 paise at Rs. 94.58 per dollar on Friday compared to the last close of Rs. 94.25.

Meanwhile, broader markets outperformed, with the Nifty Midcap index rising 1.1% and the Smallcap index gaining 0.9%.

Sensex Outlook

Technically, the Sensex formed a red candle on the daily charts, with no clear intraday direction, indicating indecisiveness.

“For day traders, 77,700 and 77,200 would act as key support zones. As long as the market trades above these levels, the bullish sentiment is likely to continue. On the higher side, 78,400-78,600 would be the immediate resistance for the bulls. On the flip side, if the market falls below 77,200, the uptrend could become vulnerable. Below these levels, traders may prefer to exit their long positions,” said Shrikant Chouhan, Head Equity Research at Kotak Securities. 

Nifty 50 Outlook

The Nifty 50 continues to remain within a broader consolidation range, with the 24,400 mark as an important breakout level for further upside.

"Going ahead, a breakout and a close above 24,400 will open further upside towards 24,600 and 24,800 levels in the coming weeks. Stock-specific action will continue to remain in focus as we progress through the quarterly earnings session. Failure to move above 24,400 will signal extension of the last 10 sessions' consolidation in the range of 24,400-23,800. Short-term support is placed at 23,800 levels, being almost identical to the low of the last two weeks," said Bajaj Broking.

Also Read: US Stock Market Today: S&P 500, NASDAQ Hold Near Records as Oil Prices Fall on Iran-US Talks

Bank Nifty Outlook

On Thursday, Bank Nifty rose 66.35 points or 0.12% to close at 56,047.40, forming a Doji candle, which suggests indecisiveness.

"The zone of 56400-56500 is expected to act as a key resistance for the index. A sustainable move above the 56,500 level would be critical and could trigger a sharp upside rally, with immediate targets placed at 57,200, followed by 58,000 in the short term. On the downside, the range of 55,600-55,500 is likely to provide immediate support and act as a cushion against any short-term corrective moves,” said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.

"It is currently placed around last week's high of 56,475. Failure to move above it will signal extension of the recent consolidation in the range of 55,000-56,475. Index has key support around 54,000-54,500 levels being the confluence of the recent low and 38.2 percent retracement of the last 3 weeks pullback," Bajaj Broking said.