Stock Market Update: Sensex, Nifty 50 Set for a Positive Start

Indian stock markets are likely to start off in green on Monday, supported by strength in global indices and cues from the derivative market here. The Gift Nifty is trading at about 26155, up by 78 points from the previous close of Nifty futures. 

The good news for India's markets came from an otherwise quiet close on Friday when domestic markets ended a two-day upswing. The Sensex was down 400.76 points, down 0.47%, closing at 85,231.92. Similarly, Nifty 50 was down by 124 points again in the range of 0.47% closing at 26,068.15. 

Sensex Outlook

On the weekly charts, the Sensex has formed a bullish candle formation which is supportive for continuation of the overall uptrend. 

The Sensex will see immediate support around the 85,000 and 84,500 zones. As long as the index trades above that mark, the sentiment is likely to remain positive. 

The first significant resistance zone will continue to be 85,800. Sustained trades above that level could take the index to 86,500. If the index falls below 84,500 it could dampen the sentiment and result in a push by traders to reduce until things settle.

Nifty 50 Outlook

Nifty 50 has formed a red candle with a long upper wick on the daily chart, reflecting selling pressure at higher levels, but on the weekly chart, the index has formed a bullish candle

Analysts note that the near-term structure remains positive. The index may form a fresh higher bottom near 26,000-25,900 before attempting a rebound.

Resistance zones to watch are 26,250-26,300, where repeated supply has emerged in recent sessions. Momentum indicators continue to signal strength. The 25,840 is expected to act as a reliable support on pullbacks.

Call Open Interest has surged significantly with an increase of over 6 crore contracts, suggesting that call writers are trying to keep the index below 26,200.

Bank Nifty Outlook

The Bank Nifty settled at 58,867.70, down 0.81%, and formed a red candle on the daily chart. Experts recommend booking profits on pullbacks as long as the index remains below the threshold of 59,440. 

Key support is at 58,600 and 58,050. Bank Nifty continues to trade above critical EMAs (21-day and 55-day), and the weekly MACD remains positive.

A clear breakout above 59,300 can set the stage towards 59,800, suitable for a buy-on-dips approach.

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Market Outlook 

Weakness in the rupee, soft manufacturing PMI data, and profit-booking after a brief rally weighed on sentiment last week. This resulted in larger declines in broader markets as the mid and small-cap indices fell by more than 1%.

Most of the sectors were in red except FMCG.

Overall, analysts remain optimistic, expecting stability will return once major support areas are tested and global cues remain favourable, despite any short-term volatility.