Stock Market Update: Nifty 50, Sensex Expected to Open Lower Amid Ceasefire Extension in the Middle East

The Indian stock market's benchmark indices are likely to open on the negative side as the US-Iran ceasefire has been extended. GIFT Nifty also indicates a gap-down start, trading at 24,445, down 130 points from its previous Nifty futures close.

Brent crude futures declined 0.2% to $98.27 a barrel. West Texas Intermediate (WTI) futures fell 0.3% to $89.39. 

On Tuesday, the Sensex edged up 753.03 points or 0.96% to close at 79,273.33, while Nifty 50 rose 211.75 points or 0.87% to settle at 24,576.60. 

Broader indices also closed higher, with the Nifty Midcap index up 0.5% and the Smallcap index rose nearly 1%.

Sensex Outlook

The Sensex formed a long-bodied bullish candle on the daily chart, and the index continued its uptrend pattern from previous sessions on the intraday timeframe. 

Immediate support zone can be seen at 79,000; a sustained hold above this level could push the index further toward 79,900-80,000.

On the downside, a break below this level could result in a short-term intraday correction.

Nifty 50 Outlook  

The Nifty 50 also formed a bullish candle with a long body and minor wicks on either side, continuing the recent uptrend.

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, said Nifty's 100-day EMA zone at 24,660-24,700 will act as a crucial hurdle for the index. A sustained move above 24,700 could trigger further upside towards 24,950, he said. 

"On the downside, the 24,460-24,430 zone is expected to act as immediate support," Shah said. 

Bajaj Broking said the bias stayed positive, above last Wednesday's gap-up area of 23,850-24,100. "Nifty is expected to maintain a positive bias and gradually head towards 24,700-24,800 levels, being the confluence of the 200-day EMA and the 61.8% retracement of the entire decline from 26,373 to 22,183," it said.

Also Read: US Stock Market Today: Dow Rises 0.6% While Nasdaq and S&P 500 Inch Up

Bank Nifty Outlook

On Tuesday, Bank Nifty gained 789.10 points or 1.39% to settle at 57,371.45. The index showed buying as it formed a large bullish candle.

“Bank Nifty has also managed to close above its 100-day and 200-day EMA, which is a positive technical development and signals improving trend strength. Going ahead, based on the current chart structure, the Bank Nifty index is expected to extend its upward momentum and may retest the 58,000 level, followed by 58,500 in the short term,” said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.