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The Indian stock markets are expected to open lower amid weak global cues, as the ongoing US-Iran conflict continues to weigh on risk sentiment. GIFT Nifty also indicates a gap-down start, trading at 24,056 with a discount of 187 points from its previous Nifty futures close.
On Monday, the Sensex gained 47.01 points or 0.06% to settle at 77,616.40, while the Nifty 50 rose 4.10 points or 0.02% to finish at 24,211. The broader markets, Nifty Midcap 100 and Nifty Smallcap 100, ended on a flat note. The Indian rupee opened 32 paise lower at Rs. 95.94 per dollar on Tuesday against Monday's close of Rs. 95.62.
Technically, the Sensex formed a bullish candle on the daily chart and recovered its morning losses.
“The 77,000 would act as a key support zone for short-term traders. As long as the market trades above this level, the uptrend wave is likely to continue. On the higher side, 77,800 would act as an immediate resistance for day traders. If the market successfully breaks that level, the rally could continue till 78,000-78,500. On the flip side, below 77,000, the uptrend would become vulnerable. Below this level, traders may prefer to exit their long positions," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Nifty 50 formed a small bullish candle on the daily chart, reflecting continued buying interest at lower levels.
With weekly expiry today, traders should be prepared for heightened volatility and sharp intraday swings as derivatives positions are adjusted throughout the session.
Right now, 24,000 is the ultimate floor. Slipping below this point will likely trigger a deeper slide and ruin the near-term chart setup. On the flip side, any bounce faces a heavy ceiling in the 24,200 to 24,300 zone. Because global headlines are running the show, upcoming expiry-day hedging could easily whip up extra wild price swings.
Traders should avoid aggressive positions at the open and focus on disciplined, level-based execution. Expect volatility to remain elevated throughout the day, especially around key support and resistance levels.
Also Read: US Stock Futures Fall as Middle East Tensions Lift Oil Prices, Rattle Markets
On Monday, Bank Nifty rose 5.55 points or 0.15% to close at 58,131.45, forming a bullish candle on the daily chart, indicating buying interest at lower levels.
It has been consolidating within the 56,500-58,500 range over the last four weeks, indicating a healthy pause after the previous up move. On the upside, 58,700 remains the immediate hurdle, said Bajaj Broking Research.
"Failure to move above 58,700 will signal extension of last 4 weeks consolidation. On the downside, 57,400-57,500 is expected to act as the immediate support, coinciding with Thursday's gap-up zone and Monday’s low. The major support is placed at 56,500, where the 20-week and 50-week EMAs converge along with the previous week's low, making it a strong demand zone," the brokerage added.
