Stock Market Update: Nifty 50 at 23,000 Support, Key Levels to Watch as FIIs Sell Rs. 4,566 Cr

The Indian markets are expected to open lower amid weak global trends and escalating tensions in the Middle East. GIFT Nifty also indicates a gap-down start, trading at 23,282 with a discount of 48 points from its previous Nifty futures close. 

The Sensex rose 394.50 points or 0.54% to close at 73,918.76, while the Nifty 50 advanced 119.10 points or 0.52% to settle at 23,242.10.

The Indian rupee opened lower by 19 paise at Rs. 95.54 per dollar on Wednesday compared to the previous close of Rs. 95.35.

Foreign investors net sold shares worth Rs. 4,566 crore, while domestic institutional investors net bought shares worth Rs. 6,159 crore on June 9.

Sensex Outlook

The Sensex formed a small red candle on the daily chart, with a reversal formation seen near 73,500.

“The 73,500 level will act as a key support zone for day traders. As long as the market trades above this level, a pullback is likely to continue, potentially moving towards 74,500-74,700 on the upside. On the flip side, a decline below 73,500 could weaken the uptrend. Below this level, traders may prefer to exit long positions,” Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

Nifty 50 in the daily chart formed a bullish hammer-like candle with a small real body and a long lower shadow, highlighting signs of reversal and buying demand emerging from the key support area of 23,000-23,200.

"Going ahead, Index holding above Monday's low (23,070) will keep the pullback trend intact and open gradual upside towards 23,500-23,550 levels in the coming sessions, being the confluence of the 20-day EMA and the last Tuesday high," said Bajaj Broking Research while commenting on the market scenario.

On broader support levels, analysts noted, "Nifty has key support at 23,000-23,100 being the confluence of the 61.8% retracement of the previous pullback (22,182-24,601) and lower band of the falling channel."

Also Read: US Stock Market Today: Wall Street Rises as Chip Stocks Rebound and Middle East Tensions Ease

Bank Nifty Outlook 

On Tuesday, Bank Nifty gained 1,130.75 points or 2.09% to settle at 55,194.50 and gave a breakout from a Symmetrical Triangle pattern on the daily chart. The index formed a sizeable bullish candle

"Immediate resistance for the index is placed at 55,500-55,600 levels, which is the neckline for the double-bottom pattern. A breakout and close above these levels will signal a further up move towards 56,500 levels. Failing to do so will signal consolidation in the broader range of 55,600-54,000. Immediate support for the index is placed around 54000-53800 levels, being the current week's low," explained Bajaj Broking Research.