Stock Market Update: Nifty 50, Sensex Likely to Open Higher Amid Improvement in Global Markets

The Indian stock markets are likely to open positively following upbeat global markets, as sentiment remains cautious around the US-Iran conflict. GIFT Nifty also indicates a gap-up start, trading at 23,527 with a premium of 65 points from its previous Nifty futures close. 

On Wednesday, the Sensex rose 49.74 points or 0.07% to close at 74,608.98, while the Nifty 50 advanced 33.05 points or 0.14% to settle at 23,412.60. 

Broader markets remained strong, with the Nifty Midcap 100 index rising 0.58% and the Nifty Smallcap 100 gaining 0.59%.

Foreign institutional investors (FIIs) net sold shares worth Rs. 4,703 crore on May 13, while domestic institutional investors (DIIs) net bought shares worth Rs. 5,869 crore.

India VIX declined 3.5% to 18.75 in early trade, indicating easing volatility in the market.

Sensex Outlook

Technically, the Sensex continues to be downtrend on the intraday chart, which suggests further weakness. The index failed to close above the 75,000 mark, largely a negative sign.

The short-term market outlook remains bearish. However, a pullback rally could occur if the market trades above 75,000. Above this level, 75,500-75,700 would be the next resistance zones for traders. On the flip side, 74,500 would act as an immediate support zone for day traders. Below this level, it could retest 74,200, said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

The Nifty 50 formed a high-wave candlestick pattern with a lower high and lower low, indicating ongoing consolidation after the sharp decline in the previous three sessions.

The index slipped to an intraday low of 23,262.55 shortly after the opening bell before staging a strong rebound to touch 23,582.95 during mid-session trade. However, renewed selling pressure in the last hour erased most of the gains, leaving the index to close marginally higher by around 0.2%.

"The index needs to start forming a sustained pattern of higher highs and higher lows on the daily chart and move above the recent breakdown area of 23,800 to signal a pause in the corrective trend. Immediate support is placed in the 23,000-23,200 zone, which coincides with the lower band of the April 8 gap area and the 61.8% retracement of the previous up move from 22,182 to 24,601", said Bajaj Broking.

The brokerage believes that a decisive move above 23,800 could indicate that selling pressure is easing, while a failure to hold the 23,000-23,200 support band may expose the index to further weakness.

Also Read: US Stock Market Today: NASDAQ Gains on Semiconductor Rally as Dow Drops After Inflation Spike 

Bank Nifty Outlook

On Wednesday, Bank Nifty declined 99.05 points or 0.18% to close at 53,456.15, forming a small-bodied bearish candle on the daily chart with shadows on either side, reflecting indecision. The index’s downtrend remains intact for a fourth consecutive session.

"Bank Nifty breached the lower end of its three-week consolidation range of 54,200-56,500. The bias remains negative below the breakdown area of 54,400, and continued weakness could drag the index toward 52,700-52,400," said Bajaj Broking Research.

These lower targets represent the confluence of the April 8 gap support and the 61.8% retracement of the prior rally from 49,955 to 57,456.