Indian markets are set for a gap-up open after US President Donald Trump announced plans to begin efforts to free up ships stranded in the Strait of Hormuz. GIFT Nifty is trading at 24,249, up 102 points from its previous close.

On Thursday, the Sensex declined 582.86 points or 0.75% to settle at 76,913.50, while the Nifty 50 fell 180.10 points or 0.74% to close at 23,997.55.

Foreign institutional investors (FIIs) remained aggressive sellers last week. They offloaded Rs. 13,771 crore, while domestic institutional investors (DIIs) provided some support with net purchases of Rs 11,585 crore.

The surge in crude oil prices had a direct impact on the Indian rupee. The currency depreciated to a record low of 95.33 against the US dollar on Thursday, increasing India's import bill.

Domestically, state elections will remain the immediate catalysts, with investors closely watching whether the Centre's ruling party, the BJP, can capture West Bengal and make inroads into Kerala and Tamil Nadu.

Sensex Outlook

The Sensex trades within the 76,900-77,200 range, which reflects a range-bound movement with a cautious undertone amid volatility.  

The immediate resistance is at the 77,500-78,000 band; a sustained breakout above this zone may take the index further toward 79,200.

Immediate support can be seen at the 76,300-76,000 range; below this, selling is likely to emerge.

Nifty 50 Outlook

The Nifty 50 ended last week on a positive note, gaining 0.42% to close at 23,997.55. "Technically, the index has sustained its position above the 21-day EMA, signaling that the short-term recovery trend remains intact despite intra-week volatility," said Dr. Ravi Singh, Chief Research Officer at Master Capital Services.

"For the coming week, as long as the index holds above this 23,800 pivot, a 'buy on dips' strategy is approachable. On the upside, 24,250 aligned with the 55-day EMA continues to act as a stiff resistance; however, a sustained move above this could trigger a further rally toward 24,750," said Dr Singh.

"Expect the market to remain in a consolidation-to-positive mode as it searches for a stable higher base," he added.

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Bank Nifty Outlook

For Bank Nifty, the outlook remains cautious. The index ended the week on a bearish note, closing at 54,863.35 with a weekly decline of 2.19% amid selling pressure.

"Technically, the index is trading below both its 21-day and 55-day EMAs, signaling that the broader technical posture remains under pressure. For the coming week, the 54,400-54,500 zone stands as the critical immediate demand area. A failure to hold this could accelerate the decline toward the 100-day EMA support," noted Dr Ravi Singh.

On the upside, the 55,500 zone acts as a stiff resistance; however, a sustained move above this could trigger a meaningful recovery towards 56,100. The index may remain highly volatile, warranting a defensive approach as the sector searches for a stable floor," he said.