The Indian stock markets are likely to open on a cautious note amid mixed global cues and uncertainty around the US-Iran peace deal. GIFT Nifty indicates a muted start, trading at 23,726 with a 22-points discount from its previous Nifty futures close.

On Friday, the Sensex fell 1,092.06 points or 1.44% to close at 74,775.74, while the Nifty 50 declined 359.40 points or 1.50% to settle at 23,547.75.  

Indian rupee opened at Rs. 94.97 per dollar on Monday against Friday's previous close of Rs. 95.

Foreign institutional investors (FIIs) net sold Indian equities worth Rs. 21,106 crore, while domestic institutional investors (DIIs) net bought shares worth Rs. 16,764 crore on May 29, their highest single-day net buying in two months.

Sensex Outlook

Technically, the Sensex fell below 75,900, as a result, selling pressure accelerated. On the weekly chart, the Sensex formed a bearish candle that supports weakness.

“As long as Sensex trades below 75,300, the weak sentiment is likely to continue. On the downside, the market could slip to 74,100-73,800. Further, downward movement may also continue, potentially dragging the index to 73,300-73,100. On the upside, above 75,300 level, a bounce back could extend till 75,900. If it crosses 75,900, the index could move towards 76,500-76,800," said Amol Athawale, VP of Technical Research at Kotak Securities.

Nifty 50 Outlook

Nifty 50 closed the week on a weak note, declining 0.72%, after facing strong resistance near its 55-day EMA and witnessing sharp selling pressure on Friday. The index continues to trade below all key moving averages.

"A crucial support zone is placed around 23,250-23,300, and a decisive break below this range could accelerate selling pressure toward the 23,000 mark. On the upside, 23,800 remains a key resistance level and coincides with the 21-day EMA. Unless the index reclaims and sustains above this level, the prevailing market strategy remains sell on rises," said Dr. Ravi Singh, Chief Research Officer, Master Capital Services Ltd.

For traders, the 23,250-23,300 zone will remain critical for the coming week, while any move above 23,800 could improve sentiment.

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Bank Nifty Outlook

On Friday, Bank Nifty declined 614.65 points or 1.12% to settle at 54,239.20. On the weekly chart, the index gained 0.34% and formed a shooting star, with a long upper wick indicating rejection from higher levels.

"Going ahead, the immediate support for Bank Nifty is placed in the 53,800-53,700 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 53,300, followed by 52,900 in the short term. On the upside, the immediate resistance for Bank Nifty is placed in the 54,600-54,700 zone," said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.