Stock Market Update: Nifty 50, Sensex Set for Positive Start on Global Optimism

The Indian markets are set to open on a cautious note today, as the futures trend suggests a soft start. The futures on the GIFT Nifty were hovering around 25,950, down 30-35 points as compared to its previous close.

On Wednesday, India’s key indices maintained their uptrend for a third consecutive session. The Sensex climbed 595 points or 0.7 % to close near 84,466, and the Nifty 50 settled near 25,876, up around 0.7 %. 

This upward momentum was mainly supported by positive political signals, trade policy optimism, and strength in sectors including IT and automobiles.

Sensex Outlook

The intraday charts for Sensex reflect the continuation of an upward channel, suggesting further gains may be in play. Key support lies around the 84,000 mark, also aligned with the 20-day moving average.

As long as Sensex is above this level, bullishness is likely to persist. On the upside, the next targets are placed in the 84,800 to 85,000 range.

However, a decisive drop below 84,000 could alter sentiment and trigger profit-taking.

Nifty 50 outlook

The derivative data for Nifty 50 has repositioned itself around critical call strikes at 25,900-26,000. Also, a significant open interest is set up around 25,800. Resistance is seen near 25,90. 

The index formed a long candle in the prior session with a smaller shadow, suggesting potential trend continuation, while support is at 25,700-25,750 in the short term.

Resistance is situated between 26,000 and 26,050. If the index breaks above this price range cleanly, prices could rise another 100 points to 26,150-26,200. If the support zone does not hold, sellers may push prices lower toward the 25,560 area to book profits. 

Bank Nifty outlook

Bank Nifty has completed the previous day, forming a bearish opening-marubozu candle, indicating selling was active near the 58,500-58,580 area. In the near term, consolidation is pending between the levels of 57,590 and 58,580. A decisive break above 58,500 could push prices higher on renewed buying towards 59,000, while a break of 57,590 may push prices lower again in the near term. 

Sectoral breadth across major sectors still remains strong, although passes metals and Realty did decline. IT, autos, telecom, and consumer durables led the advance (up 1-2 %) as global risk appetite improved and domestic flows touched new highs.

Also Read: US Stock Market Today: Dow Jones Rises 0.7% & NASDAQ Drops 0.03% Ahead of Shutdown Vote, Goldman Sachs Warns of Slower Growth

What’s Driving the Market

Domestically, optimism is being bolstered by exit-poll signs in favour of the NDA in Bihar, and a reduction in US tariffs towards India. Global cues are also improving after indications by the US government to end the shutdown, which eased risks. 

Market participants still remain cautiously optimistic with the awareness that there may be triggers ahead, including rate decisions by the US Federal Reserve, changes in global liquidity, and new domestic macro data.