Stock Market Update: Nifty 50, Sensex Set for Cautious Trade as Profit Booking and Global Uncertainty Persist

The Indian equity markets are predicted to start the session on Wednesday with a flat-to-negative opening as investors remain cautious amid mixed global signals and increasing geopolitical concerns. The initial signs from GIFT Nifty indicate that the Indian indices are set to open negatively, with the index at 26,214.5, down by 67 points or 0.25% with respect to the Nifty futures close in the previous session.

Market Recap

At yesterday's closing, the BSE Sensex lost 376.28 points or 0.44%, to close at 85,063.34. On the other hand, the NSE Nifty50 decreased by 71.60 points, or 0.27%, to reach 26,178.70. 

The wider market reflected the same trend as the Nifty Midcap and Smallcap indices went down by 0.19% and 0.22%, respectively, at the end of the day.

Sensex Outlook

At the recent peaks, the Sensex has gradually weakened, implying a break from the bull trend.

Experts point to the 84,500-84,600 range as the nearest support, which is an important level to stop further consolidation. 

Resistance at 85,500 is the initial barrier to be cleared, followed by 85,600, where selling pressure will be stronger.

Nifty 50 Outlook

The Nifty 50 remains above its short-term moving averages, including the 20-day EMA, backing its bullish structure. 

The RSI is still present in the healthy zone of 55-60 and does not indicate an immediate sell-off, although the signals of flattening point towards a period of consolidation. 

If there is a persistent movement above the 26,300 level, it could lead to the targets being set higher, close to 26,450-26,500, while the 26,100-26,000 zone is the key support zone. 

Derivatives data suggest that Put OI continues to prevail at 26,000-26,100, confirming this area as a solid base.

Bank Nifty Outlook

After the recent uptrend, Bank Nifty has been consolidating close to its all-time highs. The index is getting support from the important moving averages, while the 59,800-60,000 zone is considered to be a major demand area. 

The first line of resistance is at 60,300-60,500, and if there is a clear breakout, then the market might go up further to the 61,000-62,000 target.

Also Read: US Stock Market Today: NASDAQ & S&P 500 Rise as Rate Outlook Hinges on Fresh US Economic Reports

Sector Watch and Market View

The performance of different sectors varied. The IT, pharmaceuticals, PSU banks, and metal stocks showed better performance than the market as a whole and increased their value by 0.3%-1.7%, backed by selective buying and positive quarterly reports.

On the other hand, the infrastructure, media, oil & gas, and capital goods sectors faced significant selling pressure, leading to a decline in their indices by 0.6-1.6% amid profit booking and cautious positioning.