Indian Stock Market: Nifty 50 Opens 27.75 Points Lower at 22,964.50, Sensex Falls 48.65 Points

The Indian stock market opened higher amid escalating geopolitical risks, elevated crude oil prices, and weak global cues weighing on investor sentiment. Nifty 50 opened 27.75 points lower at 22,964.50 from the previous day’s close, while Bank Nifty started at 54,9107.10, down 2.55 points. Sensex edged down by 48.65 points to 74,199.69.

Broader markets tracked the main indices, with Nifty midcap and smallcap indices rising 1% each. The Indian rupee opened marginally higher at Rs. 95.21 per dollar on Friday compared with the previous close of Rs. 95.25.

Foreign institutional investors (FIIs) bought Indian equities worth a net Rs. 4,240.39 crore on Tuesday, their highest single-day net buying this month. Domestic institutional investors (DIIs) sold a net Rs. 1,250.03 crore.

Sensex Outlook

Sensex formed a long bullish candle on the daily chart, while on the intraday chart, it is holding an uptrend continuation formation, which supports a further uptrend from the current levels. 

“We are of the view that 73,800 and 73,500 would now act as key support zones for trend-following traders. As long as the market is trading above these levels, the bullish sentiment is likely to continue. On the higher side, the rally could continue up to 74,500-74,800. However, below 73,500, the sentiment could change. Below this level, traders may prefer to exit their long trading positions,” said Shrikant Chouhan, Head of Equity Research, Kotak Neo.

Nifty 50 Outlook

Nifty 50 has broken out of its five-day consolidation, forming a bullish candle in the previous session, indicating strong buying; 23,000 will remain a crucial hurdle.

On the weekly chart, Nifty has sustained support around the 200-week EMA over the past 3-4 weeks. Meanwhile, the hourly chart shows the index taking support from a rising trendline, making this level important for the near-term trend. 

On the upside, the 23,200-23,300 zone is likely to act as a crucial resistance area. Immediate support is placed around 22,800-22,600. Sustaining above this support zone would keep the near-term recovery intact. 

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Bank Nifty Outlook

On the daily chart, Bank Nifty closed above the previous day's bullish piercing-line candle. The index has closed above its 10-day EMA, indicating improving short-term momentum.

A decisive breakout above the 55,000-55,100 resistance zone, which coincides with the 61.8% Fibonacci retracement level and the maximum Call open interest concentration, could trigger short covering towards 56,000. The 54,500-54,700 zone is expected to act as a key support zone. The short-term bias favours a buy-on-dips approach.