Stock Market Update: Nifty 50 Opened 63.8 points Lower, Sensex Declined 309.19 points

The Indian stock markets opened lower amid mixed global cues. Nifty 50 opened 63.8 points or 0.26% lower at 24,223.85, while Bank Nifty started 172.25 points or 0.3% below its previous close. Sensex fell 309.19 points to 77,418.97.

The broader market outperformed, with the Nifty midcap index ending flat and the smallcap index rising 0.36%. The Indian rupee opened with marginal losses at Rs. 95.67 per dollar on Tuesday versus the previous close of Rs. 95.61. 

Foreign institutional investors (FIIs) remained net sellers in the Indian equity market on August 17, offloading equities worth Rs. 2,535 crore. Meanwhile, domestic institutional investors (DIIs) extended their buying streak to the fifth consecutive session, investing Rs. 5,100 crore.

 Sensex Outlook

Technically, the Sensex formed a bearish candle on daily charts, indicating continued weakness. 

"For day traders now, 78,000 would act as an immediate resistance zone for the bulls. If the market succeeds in trading above this level, it could bounce back to 80,200-80,500. On the flip side, a break below 77,500 could accelerate selling pressure. Below this, the market could retest the level of 77,200-77,000," said Shrikant Chouhan, Head of Equity Research at Kotak Securities. 

Nifty 50 Outlook

The Nifty 50 formed a small bearish candle on Monday with a small lower shadow, continuing to show a corrective bias.

"Going ahead, a move above Monday's high of 24,360 will signal a pullback towards last week's high of 24,620 in the coming sessions. Overall, the index is expected to extend the recent consolidation and trade in the broad range of 24,200-24,700," said Bajaj Broking Research.

The 24,200 level is expected to remain an important immediate support for the Nifty. Bajaj Broking Research noted that this level coincides with the 100-day and 50-day exponential moving averages.

Below 24,200, the next important support zone is placed at 24,000-23,800. This area is supported by a trendline connecting the lows of the past four months and the 61.8% retracement level of the previous move.

On the upside, 24,360 will be the first level to watch. A sustained move above this level could strengthen the possibility of a recovery towards 24,620.

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Bank Nifty Outlook

Bank Nifty formed a high-wave candle as buying interest emerged near the rising trendline connecting the lows of the past four months and the 50-day EMA.

"Within the consolidation index is facing resistance around 58,000 levels; a move above the same will open upside towards 58,500-58,700 levels, while failure to move above 58,000 will lead to consolidation in the broad range of 57,000-58,000," said Bajaj Broking Research.