Stock Market Update: Nifty 50 Opened 52.2 points Higher, Sensex Rose 163.98 points

The Indian stock markets opened higher while global cues looked a bit mixed. Nifty 50 opened 52.2 points, or about 0.22% higher, to 24,284.05, whereas Bank Nifty opened 117.3 points above its prior close. Sensex climbed 163.98 points, landing at 77,701.7.

The broader space followed too; the mid-cap index gained 0.4%, and the small-cap index also edged higher by 0.7%. On Friday, the Indian rupee started 7 paise stronger at Rs. 95.64 per US dollar.

Meanwhile, Foreign institutional investors (FIIs) remained net sellers, trimming equities worth Rs. 583 crore on August 20. On the other hand, domestic institutional investors (DIIs) kept backing the trend, with net purchases of Rs. 3,537 crore.

Sensex Outlook

Technically, the Sensex, after a gap-up open, witnessed range-bound activity. On the daily chart, it has formed a doji candle, which indicates indecisiveness among traders. 

“We are of the view that the 77,200 and 77,000 would act as key support zones for traders. As long as the market is trading above these levels, the pullback formation is likely to continue. On the higher side, the market could bounce back to 77,800-78,500. On the flip side, below 77,700, the uptrend would become vulnerable. Below this level, traders may prefer to exit their long positions,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

Nifty 50 Outlook

The Nifty 50 opened higher and subsequently traded within a narrow range. The index is currently hovering around its 50-day and 100-day EMAs. However, both averages remain broadly flat, reflecting a lack of directional momentum and signaling a phase of consolidation. 

“Going forward, the 20-day EMA zone of 24,290-24,320 is likely to act as an important hurdle for the Nifty. A sustained move above the 24,320 mark could trigger a sharp pullback rally, paving the way for an upside move towards the 24450 level. On the downside, the 24,130-24,100 zone remains a crucial support area. A decisive break below 24,100 could weaken the technical structure,” said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.

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Bank Nifty Outlook

Bank Nifty formed a doji candle with a long upper shadow, signaling selling pressure at higher levels. The index may extend the current consolidation and only a breakout or breakdown will signal directional momentum, said Bajaj Broking Research. 

"Within the consolidation, it is facing resistance around 57,500-57,800. Index sustaining below the same will open downside towards 56,500-56,200, being the confluence of the 200-day EMA and the lower band of the broader consolidation range. On the higher side, a move above 57,800 will open upside towards 58,200 and 58,700 levels in the coming weeks," the brokerage added.