Stock Market Update: Nifty 50, Sensex Likely to Open Flat, Key Levels to Watch

The Indian stock markets hint at a muted open amid mixed global cues, while investors remain cautious over US-Iran peace talks. GIFT Nifty also indicates a flat-to-negative start, trading at 24,040 with a discount of 23 points from its previous Nifty futures close.

On Monday, the Sensex rose 1,073.61 points or 1.42% to settle at 76,488.96, while the Nifty 50 gained 312.40 points or 1.32% to close at 24,031.70.

Indian rupee opened 16 paise lower at Rs. 95.39 per dollar on Tuesday against the previous close of Rs. 95.23.

Meanwhile, foreign investors (FIIs) net bought shares worth Rs. 822 crore, while domestic institutional investors (DIIs) net bought shares worth Rs. 3,857 crore on May 25.

Sensex Outlook

Technically, the Sensex’s short-term sentiment improved as it reclaimed 76,000 and closed above the day’s high.

"For trend-following traders, 76,000 would act as a key support zone. Above this, the market could continue positive momentum towards 77,000-77,200. On the downside, if the level of 76,000 is breached, the uptrend would become vulnerable. Below this, traders may prefer to exit their long positions," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

According to Bajaj Broking Research, the Nifty 50 has confirmed a bullish breakout after forming a strong bullish candle with higher highs and higher lows. The index also sustained above key short-term exponential moving averages.

The brokerage stated, "Index in the daily chart formed a strong bullish candlestick pattern with a higher high and higher low and a bullish gap below its base (23,835-23,922). The index in the process closed above the 20 & 50 days EMA, highlighting positive bias. The index has generated a breakout above the last 9 sessions' broad trading range of 23,200-23,900, signaling strength.

"Index sustaining above the Monday's gap area will keep the bias positive and will open further upside towards 24,200 and 24,600 in the coming sessions."

On the downside, immediate support is placed near 23,600, while stronger support exists in the 23,200-23,000 zone, which aligns with key retracement levels and previous bullish gaps.

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Bank Nifty Outlook 

On Monday, Bank Nifty rose 1,238.30 points or 2.29% to close at 55,293.65, forming a bullish candle on the daily chart.

The index has generated a breakout above the falling supply line joining the recent highs, signaling strength. Index sustaining above the Monday's gap area will keep the bias positive and will open further upside towards 56,000 and 56,600 levels in the coming sessions, said Bajaj Broking.

"Index has immediate support at 54,000 levels while major support is placed at 53,000-52,500, being the confluence of the lower band of the 8th April bullish gap area and the 61.8% retracement of the previous pullback (22,182-24,601). The daily stochastic is in an uptrend, thus supporting the positive bias in the index," the brokerage said.