Stock Market Update: Nifty 50 Opens 0.15% Lower, Sensex Falls 210 points Amid Ongoing Geopolitical Tensions

The Indian stock market opened lower amid elevated crude oil prices and continued geopolitical tensions. At the open, Nifty 50 fell 37.25 points or 0.15%, while Sensex declined 210 points and Bank Nifty dipped 66.95 points or 0.12%.

On Tuesday, the Sensex dropped 238.41 points, or 0.31%, to finish at 77,470.11, while the Nifty 50 fell 50.80 points, or 0.21%, to close at 24,187.70.

The Indian rupee opened lower at Rs. 96.36 per dollar on Wednesday versus Tuesday's close of Rs. 96.24.

Foreign institutional investors (FIIs) returned as net buyers in Indian equities on July 21, purchasing shares worth Rs. 1,650.16 crore, while domestic institutional investors (DIIs) turned net sellers, offloading equities worth Rs. 656.88 crore.

Sensex Outlook

Technically, the Sensex formed an indecisive candle on the daily chart, suggesting that the current range could break in either direction.

“A decisive break will be confirmed only if the market surpasses 78,700 or slips below 76,800 on a closing basis. Until then, the market is likely to remain stock-specific with limited movement. The preferred strategy remains unchanged: reduce weak long positions in the 78,300-78,600 zone, while selectively accumulating quality stocks on declines,"  said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

The Nifty 50 continued to consolidate in Tuesday's session and closed near the 24,200 mark after witnessing range-bound movement throughout the day.

"Going ahead, index to extend the recent consolidation and trade in the broad range of 23,800-24,350 in the coming sessions. Within the consolidation 24,000-24,100 is the immediate support. We expect the index to hold above the same and head toward the upper band of the range and last week high placed at 24,370 levels," said Bajaj Broking.

The brokerage further said that a decisive breakout above 24,370 could pave the way for the index to move toward 24,600. On the downside, the 24,000-23,800 zone remains a crucial support area.

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Bank Nifty Outlook

Bank Nifty formed a Doji candle with a long upper shadow, indicating profit booking at higher levels after recent gains.

"Going ahead, only a move above the June high of 58,700 would confirm a breakout from the ongoing consolidation and could trigger the next leg of the rally toward 59,300 and eventually 60,000 levels in the coming weeks. Failure to do so will signal extension of the last six weeks consolidation," said Bajaj Broking.

Analysts believe the banking index is likely to remain range-bound unless it manages to break above the key resistance level of 58,700.