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

The Indian stock markets are likely to open on a positive note amid upbeat signals from global markets and hopes for a US-Iran peace deal. GIFT Nifty also suggests a gap-up start, trading at 23,768.5 with a premium of 103.5 points from its previous Nifty futures close.

On Wednesday, the Sensex rose 117.54 points or 0.16% to close at 75,318.39, while the Nifty 50 advanced 41 points or 0.17% to settle at 23,659.

Broader markets traded higher on Thursday morning. The Nifty Midcap 100 index gained 0.72%, while the Nifty Smallcap 100 index rose 0.77%.

India VIX declined 4.56% to 17.60 in early trade, indicating easing volatility after global risk sentiment improved.

The Indian rupee opened at Rs. 96.30 against the US dollar, strengthening from yesterday’s record close of Rs. 96.82.

Sensex Outlook

Technically, the Sensex continues to trade in a broader sideways range, reflecting cautious market sentiment and lack of directional momentum.

“The short-term market texture is non-directional, and is likely to continue in the near future. 75,000 and 74,500 would act as immediate support zones, while 75,800-76,000 could be the key resistance areas for the bulls. On the upside, 76,000, the market could move up to 76,300-76,500, while a failure to hold 74,500 could push the market towards 74,200-74,000. As the intraday market texture is non-directional, level-based trading would be the ideal strategy for day traders," said  Shrikant Chouhan, Head Equity Research at Kotak Securities.

Nifty 50 Outlook

According to Bajaj Broking, the Nifty 50 formed a bullish candle on the daily chart with a lower high and lower low. This suggests a strong pullback after a weak open and reinforces the importance of support levels around 23,200-23,000.

"Going ahead, index to extend the last six sessions consolidation in the range of 23,200-23,900. Only a move above the recent breakdown area of 23,800-23,900, will signal a pause in the overall corrective trend. A move above the breakdown area of 23,800-23,900 is needed to signal strength," the brokerage added.

"Nifty has key support at 23,200-23,000 levels 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 brokerage stated.

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Bank Nifty Outlook

On Wednesday, Bank Nifty rose 153.05 points or 0.29% to close at 53,562.20, forming a bullish candle, highlighting a pullback after a gap down start.

The banking index is expected to consolidate within the 52,700-54,700 range in the near term. Sustaining above the 52,700-52,400 support zone could pave the way for a pullback toward 54,000 and 54,700.

"However, Index need to form higher high and higher low on a sustained basis in the daily chart and a move above the breakdown area of 54,400-54,700 to signal a pause in the recent downtrend. Key support is placed at 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)", said Bajaj Broking.