Stock Market Update: Nifty 50 Opens 191.3 points Higher, Sensex Over 650 points

The Indian stock markets opened higher amid stable global market cues. Nifty 50 opened 191.3 points higher at 24,176.65 compared to its previous close of 23,985.35, while Bank Nifty started the day 371 points higher at 57,126.60. Sensex opened 657.85 points above the previous close of 76,765.92.

The broader market on Tuesday ended on a mixed note, with the Nifty Midcap 100 index edging up 0.1%, while the Nifty Smallcap 100 index slipped 0.2%.

The Indian rupee opened at Rs. 95.72 per dollar on Wednesday versus the previous close of Rs. 95.86.

Foreign investors (FIIs) were net buyers of shares worth Rs. 755 crore, while domestic institutional investors (DIIs) bought shares worth Rs. 1,664 crore on July 28. FIIs turned net buyers after being net sellers for over four trading sessions.

Sensex Outlook

Technically, the Sensex hovered between the 76,700 and 77,000 price range. A small candle on the daily charts and non-directional intraday activity indicate indecisiveness. The intraday market texture is non-directional, perhaps traders are waiting for a breakout on either side.

"On the higher side, if the market succeeds in trading above 77,000, it could then move up to 77,300-77,500. On the flip side, a breach of 76,500 could accelerate selling pressure. Below this level, the market could retest the levels of 76,200-76,000," said Shrikant Chouhan, Head of Equity Research at Kotak Securities. 

Nifty 50 Outlook

Nifty 50 formed a small bullish candle with a minor upper shadow on the daily chart, indicating choppy price action near the crucial 24,000-24,100 resistance zone.

Hitesh Rathi, Technical Analyst, Equity & Derivatives at Angel One, said he expects the Nifty 50 to first retest the 23,750-23,600 demand zone before a move higher. 

Rathi noted that the higher timeframe charts continue to indicate a broadly sideways trend, and expects the index to remain range-bound until a decisive breakout emerges. The 24,050-24,100 zone is the immediate resistance, followed by a stronger hurdle in the 24,250-24,350 range. On the downside, 23,880-23,800 is expected to act as the first support zone, while 23,700-23,600 remains a stronger support area.

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Bank Nifty Outlook

Bank Nifty formed a small-bodied bearish candle with a long upper wick, reflecting profit booking at higher levels.

A decisive breach below the 100-day EMA at 56,660 could accelerate the decline towards the 56,000-56,200 level. On the upside, 57,050 remains the immediate resistance. A sustained move above this level would signal renewed buying momentum and could pave the way for an up move, said Bajaj Broking. 

"Nifty Bank in the last 6 weeks is seen consolidating in the range of 56,500-58,700. Within the consolidation, immediate hurdle is placed at the 57,500 level. On the downside, key support is placed at the 56,000-56,200 levels. A breach below the same will lead to acceleration of decline towards 55,000 levels, being the confluence of the trendline support joining previous major lows," it added.