Stock Market Update: Nifty 50 Opened 43.3 points Lower, Sensex Declined 72.63 points

The Indian stock markets opened higher amid weak global cues. Nifty 50 opened 43.3 points, or about 0.18% lower, at 24,175.75, whereas Bank Nifty opened 165.3points above its prior close. Sensex fell 72.63 points to 77,295.49.

The broader indices were mixed, with the Nifty midcap index rising 0.13%, while the smallcap index shed 0.26%. The Indian rupee opened flat at Rs. 95.72 per dollar on Tuesday versus previous close of Rs. 95.74.

Foreign institutional investors (FIIs) turned net buyers on Monday, purchasing Rs. 1,181.66 crore worth of Indian equities, while domestic institutional investors (DIIs) also remained net buyers with purchases of Rs. 2,493.41 crore.

Sensex Outlook

Technically, the Sensex, after a positive open, faced consistent selling pressure at higher levels. A bearish candle on daily charts and a reversal formation on intraday charts indicate further weakness from the current levels.

“We believe that 77,500 will act as an immediate resistance zone for the bulls. As long as the index is trading below this level, the weak formation is likely to continue. On the downside, the market could slip to 76,800-76,500. On the flip side, above 77,500, the market could bounce back to 77,800-78,000,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

Nifty 50 Outlook 

The Nifty 50 formed a bearish candle in the previous session, with shadows on both sides, indicating consolidation. The index failed to cross last week's high of 24,360 and shed the gains recorded on Friday.

The index closed around its 50-day EMA, making the 24,130 level an important near-term support. If the Nifty manages to sustain above this level, a recovery towards 24,280 and 24,360 could be possible.

A decisive move above 24,360, which was last week's high, could strengthen the recovery and open the way towards the 24,600 level in the coming weeks.

On the other hand, failure to move above the recent high could keep the index within a broader consolidation range of 24,000-24,350.

"Volatility is likely to be high in session on account of the monthly F&O expiry. Index holding above 24,130 will lead to a pullback towards 24,280 and 24,360 levels. In the coming sessions, a follow through strength above last week high 24,360 will signal extension of the pullback towards 24,600 levels in the coming weeks," said Bajaj Broking Research.

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Bank Nifty Outlook

Bank Nifty also witnessed selling pressure in the previous session. The index formed a bearish candle with a higher high and lower low, reflecting intraday volatility and profit booking at elevated levels.

The 58,000 mark has emerged as an important resistance level. If Bank Nifty remains below this level, the index could move towards 57,000 and 56,500. 

"In the smaller time frame Bank Nifty in the last 15 sessions is seen consolidating in a narrow range retracing just 50% of its previous 7 sessions up move from 56,023 to 58,248. A shallow retracement signals higher base formation. On the higher side a move above 58,000 will open up side towards 58,500-58,700 levels in the coming weeks being the upper band of the recent consolidation," said Bajaj Broking Research.