Stock Market Update: Nifty 50 Eyes 23,500 Breakout as Sensex Targets 74,500 Amid Positive Global Sentiment

The markets are likely to open higher amid positive global cues, driven by hopes of a peace deal between the US and Iran after US President Donald Trump canceled the strikes on Iran. GIFT Nifty also indicates a gap-up start, trading around 25,000 with a premium of 298 points from its previous Nifty futures close.

On Thursday, the Sensex fell 150.63 points or 0.20% to settle at 73,832.55, while the Nifty 50 dropped 53.35 points or 0.23% to close at 23,161.60.

Foreign investors (FIIs) net sold shares worth Rs. 1987 crore, while domestic institutional investors (DIIs) net bought shares worth Rs. 4225 crore on June 11.

Sectorally, private banks, media, and pharma were up 0.5-2%, while the IT index shed 1.4%; PSU Bank, Realty, Energy, Consumer Durables were down 0.5% each.

Sensex Outlook

Technically, the Sensex formed a small red candle with a long upper wick on daily charts, while non-directional intraday activity indicates indecisiveness.

"For day traders, 74,200 would act as an immediate resistance zone. Above this level, the market could move towards 74,500-74,700. On the flip side, below 273,500, selling pressure is likely to accelerate. Below that, the chances of hitting 73,200-73,000 would increase," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

Nifty 50 formed an inverted hammer-like candle on the daily chart, indicating a pullback attempt after a gap-down opening. However, the benchmark failed to sustain gains at higher levels.

"Nifty continues to consolidate in the broad range of 23,000-23,550. We expect the current consolidation to extend until a directional breakout emerges," said Bajaj Broking Research.

Technical analysts highlighted that Nifty has repeatedly rebounded from the important support zone of 23,000-23,200 over the past two weeks. This area coincides with the 61.8% retracement level of the previous rally and the lower band of the falling channel, making it a crucial support region for the index.

Nifty faces an immediate hurdle near 23,327. A sustained move above this level could trigger fresh buying interest and pave the way towards 23,500-23,550.

Also Read: US Stock Market Today: S&P 500 Edges Higher as Chip Stocks Rebound and Trump Renews Iran Warning

Bank Nifty Outlook 

On Thursday, Bank Nifty rose 76.45 points or 0.14% to close at 55,176.75. The index formed a small bullish candle with a higher high and a lower low, signaling consolidation. Despite recent profit booking, the banking index remains above its 20-day EMA.

Bajaj Broking Research observed that Bank Nifty has seen selling pressure over the past two sessions near the 55,500-55,600 zone, which represents the neckline of a double-bottom breakout pattern.

"A decisive move above this level would confirm renewed buying momentum and open the path towards 56,500 levels in the coming weeks. Failure to do so will lead to some consolidation in the range of 53,800-55,600."

On the downside, immediate support is placed between 54,000 and 53,800, which marks the low of the current week and an important retracement level of the recent pullback.