Stock Market Update: Nifty 50 Opened 2.85 Points Lower, Sensex Fell 17.41 Points

The Indian stock markets opened on a flat note amid weak global cues. Nifty 50 opened 2.85 points or 0.01% lower at 24,152.05, while Bank Nifty started 1.75 points below its previous close. Sensex fell 17.41 points to 77,218.05.

The Indian rupee opened flat at Rs. 95.70 per dollar on Wednesday against Tuesday's close of Rs. 95.68.

Foreign institutional investors (FIIs) turned net buyers in Indian equities on August 18, buying shares worth Rs. 1,652 crore, while domestic institutional investors (DIIs) remained net buyers, investing Rs. 2,579 crore. Among broader indices, the Nifty midcap index shed 0.4% and the smallcap index ended flat.

Sensex Outlook

Technically, the Sensex formed a bearish candle on the daily chart and a lower-high formation on the intraday chart, indicating further weakness from the current levels. 

“We are of the view that, as long as the market is trading below 77,500, a weak sentiment is likely to continue on the downside. The market is likely to retest the levels of 77,000-76,700. On the flip side, above 77,500, sentiment could change. If it surpasses this level, the bounce back could continue till 77,800-78,000,” said Shrikant Chouhan, Head Equity Research, Kotak Securities

Nifty 50 Outlook

The Nifty 50 ended Tuesday's session below the important 24,200 level, reflecting continued weakness. 

The index formed a bearish candle while continuing to make lower highs and lower lows. 

"Overall index is expected to extend the recent consolidation and trade in the broad range of 24,000-24,600 in the coming sessions," said Bajaj Broking Research.

The Nifty has remained in a consolidation phase for the past 11 sessions with a corrective bias. The index has retraced around 50% of its previous seven-session rise from 23,606 to 24,774, with the relatively shallow retracement suggesting the possibility of a higher base formation.

The 24,000-23,800 zone is expected to act as an important support area. This area combines trendline support from the lows of the past four months, a previous major gap area and the 61.8% retracement level of the move from 23,606 to 24,774.

Also Read: US Stocks Fall as Rising Bond Yields and Oil Prices Pressure AI Tech Shares

Bank Nifty Outlook

Bank Nifty formed an inverted hammer-like candle on Tuesday; this indicates consolidation with a corrective bias around the 50-day EMA.

The broader eight-week consolidation range remains between 56,500 and 58,700. The brokerage expects this range to remain intact unless the index gives a decisive breakout or breakdown. On the upside, 58,000 is an important resistance level. A sustained move above this level could open the way towards 58,500-58,700.

"On the downside, a decisive break below 57,000 (50-day EMA & rising trendline support) would signal an extended corrective move towards 56,500-56,200, being the confluence of 200-day EMA and the lower band of the broader consolidation range," said Bajaj Broking.