Stock Market Update: Nifty 50, Sensex Likely to Open Higher Amid Rise in Oil Prices

The Indian stock market is expected to open on a negative note amid mixed cues from global markets and a rise in oil prices. GIFT Nifty also indicates a gap-down start, trading at 24,008 with a discount of 85 points below its previous Nifty futures close.

On Monday, Indian benchmarks closed higher. The Sensex rose 639.42 points or 0.83% to close at 77,303.63, while the Nifty 50 advanced 194.75 points or 0.81% to settle at 24,092.70.

Broader markets also edged up, with the Nifty Midcap index rising 1.5% and the small-cap index gaining 1.9%.

Sector-wise, healthcare, IT, realty, media, consumer durables, pharma, and power indices all advanced around 2% each.

Sensex Outlook

Technically, the Sensex formed a bullish candle with small shadows on either side on the daily chart. This suggests a pullback after the earlier three sessions of losses.

The immediate support zone can be seen at the 77,000-76,700 range. For bullish momentum to continue, the index should sustain above this level. 

Immediate resistance is around 77,500; a break above this level could trigger a rally toward 78,000.

Nifty 50 Outlook

On the daily chart, the Nifty 50 formed a bullish candle with an upper shadow. The candle absorbed some of the previous sessions' losses and indicates buyers are active near the 23,800 level.

“A long bull candle was formed on the daily chart that was placed within the high-low range of Friday’s long red candle. This indicates the formation of an inside day type candle pattern, which signals a possible comeback of bulls after a reasonable downward correction. Bullish pattern like higher tops and bottoms has started to form on the daily chart and Friday’s swing low of 23.813 could now be considered a new higher bottom of the pattern,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

He also added, “The next upside levels to be watched are around 24,500 - 24,600 in the next few sessions. Immediate support is placed at 23,800.”

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Bank Nifty Outlook

On Monday, Bank Nifty advanced 174.55 points or 0.31% to close at 56,264.30, forming a small-bodied candle with long shadows on both sides. This suggests indecisiveness among traders.

Bajaj Broking said, “Index formed a second consecutive high wave candlestick pattern with a higher high and a higher low signaling consolidation and buying demand emerging from near the 20-day EMA. The index witnesses consolidation in the broad range of 54,500-57,500 amid stock-specific action as we progress through the quarterly earnings session of the banking stocks.” 

Brokerage added, “On the lower side, a breach below last week's low of 55,750 will open downside towards the 54,500 levels. From a short-term perspective, support is placed in the range of 54,500-54,000 zone, being the confluence of the recent low and 38.2% retracement of the last 3 weeks pullback (49,955-57,456).”