The Indian stock markets are expected to open lower amid weak global cues and growing concerns about inflation as oil prices remain above $110. GIFT Nifty also indicates a gap-down start, trading at 23,429 with a discount of 129 points from its previous Nifty futures close.

On Tuesday, the Sensex fell 114.19 points or 0.15% to close at 75,200.85, while the Nifty 50 declined 31.95 points or 0.14% to settle at 23,618.

The Indian rupee opened at a record low of Rs. 96.86 per US dollar after closing at Rs. 96.53.

Foreign institutional investors (FIIs) offloaded shares worth Rs. 2,457 crore, while domestic institutional investors (DIIs) bought shares worth Rs. 3,802 crore.

IT stocks extended its uptrend for the second consecutive session with Nifty IT index surging 6%, outperforming broader markets.

Sensex Outlook

Technically, the Sensex formed an inverted hammer type candle on the daily chart, which suggests indecision in the market.

“The short-term market texture is non-directional, and range-bound activity is likely to continue in the near future. On the upside, 75,800 would act as a crucial resistance zone. While 75,000 would be the key support area for day traders, on the upside, above 75,800, the market could move towards 76,000-76,200. Conversely, if the index falls below 75,000, the chances of hitting 74,500-74,300 would increase," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

The Nifty 50 formed a bearish candle with long upper wick on the daily chart, which indicates selling pressure at higher levels.

"Going ahead, failure to move above the recent breakdown area of 23,800-23,900, will keep the bias corrective and the index will consolidate with downward bias in the range of 23,200-23,900. A move above the breakdown area of 23,800-23,900 to signal a pause in the recent downtrend," Bajaj Broking Research said.

The brokerage noted that immediate support is placed in the 23,200-23,000 zone. This region coincides with the lower end of the bullish gap formed on April 8 and the 61.8% Fibonacci retracement of the prior rally from 22,182 to 24,601.

Technical indicators also suggest caution. The daily 14-period Relative Strength Index (RSI) is facing resistance near its nine-period moving average, highlighting a continuing corrective bias.

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Bank Nifty Outlook

On Tuesday, Bank Nifty backed 127.85 points or 0.24% to settle at 53,409.15, forming a small-bodied candle on the daily chart, indicating lack of strong directional conviction.

“Index likely to consolidate in the range of 52,700-54,700. Holding above the key support area of 52,700-52,400 will lead to a pullback towards the recent breakdown area of 54,000 and 54,700. A move above the breakdown area of 54,400-54,700 to signal a pause in the recent downtrend. Key support is placed at 52,700-52,400 levels being the confluence of the lower band of the 8th April gap area and the 61.8% retracement of the previous pullback (49,955-57,456).” said Bajaj Broking.