The Indian stock markets are likely to open lower amid weak sentiment in global markets and caution over the US-Iran peace talks. GIFT Nifty also indicates a gap-down start, trading at 23,262 with a discount of around 200 points from its previous Nifty futures close.

At press time, the Sensex fell 508.40 points or 0.68% to close at 74,267.34, while the Nifty 50 fell 165.15 points or 0.70% to settle at 23,382.60. Broader markets also ended lower with Nifty Midcap and Smallcap indices down 1.4% and 0.9%, respectively.

The Indian rupee opened slightly lower at Rs. 95.05 per dollar on Tuesday compared to the previous close of Rs. 95. Foreign investors (FIIs) net sold shares worth Rs. 3,912 crore, and domestic institutional investors (DIIs) net bought shares worth Rs. 5,109 crore on June 1. 

Sensex Outlook

Technically, the Sensex formed a bearish candle on the daily chart with a lower top formation on the intraday chart, which is largely negative.

“The short-term outlook of the market is weak, but due to temporary oversold conditions, a technical bounce back. For day traders, 74,500 would act as a trend decider level. Below this, the correction wave is likely to continue on the downside, with the market potentially slipping to 74,000-73,700. On the flip side, above 74,500, the bounce back could continue until 74,800-75,000," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

The Nifty 50 remains in a short-term downtrend after closing below key support level. The index slipped below last week's low of 23,484, indicating that selling pressure continues to dominate price action.

"Going ahead bias continues to remain down, and the index is likely to test last month's low of 23,262 in the coming sessions. Only a formation of higher high and higher low in the daily chart will signal a pause in the downtrend. On the higher side, 23,700-23,800 is expected to act as resistance being a confluence of Monday's high and 20-day EMA," said Bajaj Broking Research.

Traders will closely watch the 23,262 zone as an immediate support area, while the 23,700-23,800 range could act as a key hurdle for any recovery attempt.

Also Read: US Stock Market Today: Wall Street Holds Near Record Highs as AI Optimism Offsets US-Iran War Doubts

Bank Nifty Outlook

On Monday, Bank Nifty declined 596.10 points or 1.10% to close at 53,643.10, forming a bearish candle on the daily chart, while it continues to trade below all key short-term moving averages.

"Index likely to consolidate in the range of 52,500-55,600 only a breakout or breakdown will signal directional movement. Bank Nifty has key support placed at 52,700-52,500 being the confluence of the lower band of the 8th April bullish gap area and the 61.8% retracement of the previous pullback (49,955-57,456). On the higher side key resistance at 55,600-56,000 levels is the confluence of last week's high and the 50-day EMA," said Bajaj Broking.

Investors should keep an eye on the above price levels to gauge the market’s next direction.