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The Indian stock markets are expected to open higher despite mixed global cues. GIFT Nifty also indicates a gap-up opening, trading at 24,570 with a premium of 88 points from its previous Nifty futures close.
On Monday, the Sensex rose 521.16 points or 0.67% to finish at 78,285.07, while the Nifty 50 advanced 159.50 points or 0.66% to settle at 24,430.35.
The Indian rupee opened with marginal gains at Rs. 95.33 per dollar on Tuesday versus the previous close of Rs. 95.40.
Domestic institutional investors (DIIs) remained net buyers in Indian equities on July 6, purchasing shares worth Rs. 3,791.42 crore, while foreign institutional investors (FIIs) also turned buyers with an inflow of Rs. 243.03 crore.
Technically, the Sensex formed a bullish candle on the daily chart with a higher high and higher low formation on the intraday chart, which supports a further uptrend.
“For day traders 78,000 would be a crucial level. As long as the market trades above this level, positive momentum is likely to continue. On the higher side, it could move up to 78,500-78,800. On the flip side, below 78,000, a quick intraday correction cannot be ruled out. If it falls below this level, the market could retest the levels of 77,500-77,300," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Nifty 50 is now approaching an important resistance zone. A decisive breakout above 24,482 could open the doors for a move toward 24,600 and 24,752 in the coming sessions.
"For the coming session, the 24,252-24,287 zone will act as immediate support. Holding above this zone is likely to extend the upmove toward 24,600-24,752. A decisive move above 24,482 could accelerate gains towards 24,600-24,752, which coincides with the April swing high and the 61.8% Fibonacci retracement of the decline from 26,314 to 22,182," said Bajaj Broking Research.
As long as Nifty remains above the 24,250 region, traders may continue to use market dips as buying opportunities.
Also Read: US Stock Market Today: S&P 500 and NASDAQ Rise as Chip Stocks Rebound, Dow Slips After Record High
On Monday, Bank Nifty rose 353 points or 0.61% to finish at 58,291.50, forming a bullish candle with a small upper shadow on the daily chart, indicating sustained buying interest.
The index continues to consolidate around 58,000, and a breakout above 58,700 could trigger the next leg of the rally towards 59,200.
At the same time, experts believe the 57,000-57,500 zone has emerged as a strong demand area where buyers have consistently stepped in over the past few weeks.
"A failure to sustain above 58,700 may keep the index consolidating within the 57,000-58,700 range. The overall trend remains constructive, and the ongoing consolidation should be viewed as an opportunity to accumulate quality banking stocks in a staggered manner for the next leg of the upmove," said Bajaj Broking Research
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