Stock Market Update: Nifty 50, Sensex Likely to Open Higher Amid Global Uncertainty

The Indian stock markets are likely to open higher, tracking mixed global cues. GIFT Nifty indicates a gap-up start, trading at 23,454 with a premium of 30 points from its previous Nifty futures close.

On Tuesday, the Sensex fell 1,456.04 points or 1.92% to settle at 74,559.24, while the Nifty 50 plunged 436.30 points or 1.83% to close at 23,379.55.

Foreign institutional investors (FIIs) remained net sellers on May 12, selling shares worth Rs. 1,959 crore, while Domestic institutional investors (DIIs) bought shares worth Rs. 7,990 crore.

The India VIX remained above the 19 mark, indicating heightened market volatility and increased investor caution.

The rupee opened slightly higher by 2 paise at Rs. 95.61 against the US dollar on Wednesday, 13 May, supported by the government’s decision to raise import duties on gold and silver.

Sensex Outlook

Technically, the continuous decline in Sensex has weakened the near-term sentiment, with the index slipping below key short-term support levels.

"For day traders, 74,800 would act as a key resistance zone. Below this, we could expect the correction continuation pattern to extend till 74,000-73,700. On the flip side, above 74,800, the pullback move could extend up to 75,000-75,300," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

The Nifty 50 has turned technically weak after breaking below the lower end of its three-week consolidation band of 23,800 to 24,400.

The index formed a large bearish candle with a lower high and lower low, along with a bearish gap in the 23,757-23,800 zone, signalling that the correction may continue for a fourth consecutive session.

"Bias continues to remain down below Tuesday's breakdown area of 23,800 and a follow through weakness will open further downside towards 23,000-23,200 levels being the confluence of the lower band of the 8th April gap area and the 61.8% retracement of the previous pullback (22,182-24,601)," Bajaj Broking Research stated.

The technical setup suggests that unless the Nifty reclaims the 23,800 level, bears are likely to retain control in the near term.

Also Read: US Stock Market Today: Wall Street Pulls Back From Record Highs as April CPI Fuels Fed Rate Concerns 

Bank Nifty Outlook

On Tuesday, Bank Nifty declined 884.70 points or 1.63% to close at 53,555.20, forming a third consecutive bearish candle, signaling extension of the downtrend. 

The Nifty Bank also showed signs of continued weakness after breaking the lower boundary of its recent consolidation range of 54,200 to 56,500.

"Bias continues to remain down below Tuesday's high of 54,365 and a follow through weakness will open further downside towards 52,700-52,400 levels being the confluence of the lower band of the 8th April gap area and the 61.8% retracement of the previous pullback (49,955-57,456)," stated Bajaj Broking Research.