Stock Market Update: Nifty 50 Opened 0.14% Higher, Sensex Jumped 88.7

The Indian stock markets opened higher amid mixed global signals. Nifty 50 opened 33.05 points, or about 0.14% higher, to 24,285.05, whereas Bank Nifty opened 66.2 points above its prior close. Sensex climbed 88.73 points to 77,629.56.

The broader indices were mixed, with the mid-cap index ending flat, while the small-cap index rose 0.7%.

The Indian rupee opened higher at Rs. 95.64 per dollar on Monday versus Friday's close of Rs. 95.70.

Foreign institutional investors (FIIs) were net sellers in Indian equities on August 20, selling shares worth Rs. 583 crore, while domestic institutional investors (DIIs) remained net buyers, investing Rs. 3,538 crore.

Sensex Outlook

Technically, the Sensex short-term outlook remains weak. However, the 50-day SMA is expected to act as a crucial support zone for traders. On the higher side, the market could bounce back to 78,000.

"A successful breakout above 78,000 could push the market towards the 78,300-78,900 range. On the flip side, if the market falls below 76,900, sentiment could turn negative. Below this level, selling pressure is likely to accelerate, and the index could retest the 76,400 level," said Amol Athawale, VP of Technical Research at Kotak Securities.

Nifty 50 Outlook

The Nifty 50 formed a small bearish candle with a lower shadow on Friday, indicating that the recent recovery from oversold levels continued for a second session.

"Going ahead, a follow through strength above Friday's high 24,284 will signal extension of the pullback towards 24,400 levels in the coming sessions. While failure to move above Thursday's high will signal consolidation in the range of 24,000-24,250," said Bajaj Broking Research.

Overall, the Nifty 50 is expected to remain in a broad 24,000-24,600 range in the coming sessions. The index has short-term support around 24,000-23,800, while a sustained move above 24,284 could open the way towards 24,400.

Also Read: What Makes a Stock Market ‘Overvalued’? Key Signals Investors Should Watch

Bank Nifty Outlook

Bank Nifty also extended its recovery for a second straight session, forming a bullish candle with a higher high and higher low.

"Within the consolidation index is facing resistance around 58,000 levels. Index sustaining below the same will open down side towards 56,500-56,200, being the confluence of 200-day EMA and the lower band of the broader consolidation range. In the smaller time frame Bank Nifty in the last 14 sessions is seen consolidating in a narrow range retracing just 50% of its previous 7 sessions up move from 56,023 to 58,248," Bajaj Broking Research said.

A sustained move above 58,000 could strengthen the recovery and take Bank Nifty towards 58,500-58,700. On the downside, a break below the current support zone could drag the index towards 56,500-56,200.