Stock Market Update: Nifty 50, Sensex Expected to Open Higher Amid Positive Global Cues

The Indian stock markets are likely to open on a higher note amid a rally in global markets. GIFT Nifty also indicates a positive open, trading at 24,126.5 with a 172.5 points premium from its previous Nifty futures close.

On Friday, the Sensex declined 999.79 points or 1.29% to close at 76,664.21, while the Nifty 50 settled 275.10 points or 1.14%, lower at 23,897.95.

Meanwhile, Crude oil prices saw a sharp jump in early trading. West Texas Intermediate (WTI) crude rose around 2.1% to trade near $96.41 per barrel, while Brent crude surged nearly 2.30% to hover close to $107.7 per barrel.

FIIs offloaded shares worth Rs. 8,828 crore on Friday. This was their biggest single-day selling since April 7. At the same time, DIIs bought shares worth Rs 4,701 crore.

Sensex Outlook

Technically, the Sensex formed a bearish candle on weekly charts, which supports further weakness from the current levels.

The 77,000 level will be the key level, below this correction is likely to continue, the index could likely slip toward 76,500 followed by 76,000.

On the upside, a break above the crucial 77,000 level could trigger a rally toward 78,00-78,200 in the short-term.

Nifty 50 Outlook

The Nifty 50 closed below its 100-week EMA on Friday, a sign of fading broader momentum and signals a cautious outlook.

"On the upside, immediate resistance is placed at 24,000, followed by 24,150 and 24,350 levels. On the downside, support is seen at 23,800 and then at 23,700. A decisive breakdown below 23,500 could trigger further downside pressure. Given the current volatility, traders are advised to remain cautious and adhere to strict risk management practices," said Choice Broking.

Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse Ltd. said the initial support for the index is seen around 23,580. “On the retracement front, the 38.2% Fibonacci level of the recent upmove is positioned at 23,690, which could be tested in the upcoming expiry week.

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Bank Nifty Outlook

On Friday, Bank Nifty declined 215.25 points or 0.38% to close at 56,089.75. The index formed a small bearish on the weekly chart that signals consolidation after the recent upmove.

In the last three sessions the index witnessed profit-booking after rallying over 7,500 points in the last 3 weeks. 

"Some consolidation at current level cannot be ruled out. We expect the index to consolidate in the range of 54,500-57,500. From a short-term perspective, support is placed in the range of 54,500-54,000 zone, being the confluence of the recent low and 38.2%  retracement of the last 3 weeks pullback," said Bajaj Broking.