Stock Market Update: Nifty 50, Sensex Likely to Open Lower Amid Mixed Global Cues

The Indian stock markets are likely to open on the lower side amid mixed global cues as the US and Iran rejected the peace proposal. GIFT Nifty also indicates a gap down opening of 258.5 points at 23,258.5 from its last Nifty futures close. 

On Friday, the Sensex declined 516.33 points or 0.66% to settle at 77,328.19, while the Nifty 50 fell 150.50 points or 0.62% to close at 24,176.15.

The Midcap index, however, hit a new all-time high and closed at 61,911, up 0.15%, while the Smallcap index continued its rally.

Foreign institutional investors (FIIs) have sold shares worth Rs. 4,111crore on Friday, while domestic institutional investors (DIIs) were net buyers for the 11th consecutive day with inflows of Rs. 6,748 crore.

The Indian rupee opened 40 paise lower at Rs. 94.88 against the US dollar. This comes as oil prices remain elevated. 

Sensex Outlook

The Sensex is technically in a wider consolidation pattern, and the momentum indicators are showing some signs of weakness on the short-term horizon. 

“For Sensex, 76,500 would act as a crucial support zone. On the higher side, 78,000 would be the immediate resistance zone. The bullish sentiment will remain intact as long as the index stays above this level. A successful breakout above 78,000 could push the market up to 78,300-78,900. If the market falls below 76,500, selling pressure is likely to accelerate. Below this level, the market could retest 75,900, with downside potentially dragging it to 75,400-75,200,” said Amol Athawale, VP of Technical Research at Kotak Securities.

Nifty 50 Outlook

The Nifty 50 reclaimed and sustained above both 21-day and 50-day exponential moving averages (EMAs), which suggests the overall recovery trend is still holding.

"For the week, as long as the index holds above the 24,000 pivot, a 'Buy on dips' strategy is approachable. On the upside, 24,500 aligned with recent supply zones continues to act as stiff resistance; however, a sustained move above this could trigger a further rally toward 24,800," said Dr. Ravi Sigh, Chief Research Officer, Master Capital Services Ltd. 

"The market may remain in a consolidation to positive mode as it attempts to build a stable floor around the 24,000-24,500 zone," he added. 

The Nifty 50 index is likely to trade with a positive sentiment this week, with 24,000 being an important support level and 24,500 the near-term resistance level. If the price breaks above 24,500, a rally towards 24,800 could take place. 

Also Read: US Stock Market Today: S&P 500 Heads for Sixth Straight Weekly Gain After Jobs Data Beats Forecasts

Bank Nifty 

On Friday, Bank Nifty declined 736.85 points or 1.31% to close at 55,310.55, forming a bearish candle on the daily chart, and slipped below its 20-day EMA with short-term weakness.

"Going ahead, the immediate support for Bank Nifty is placed in the 54,900-54,800 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 54500, followed by 54,100 in the short term. On the upside, the immediate resistance for the Index is placed in the 55,800-55,900 zone," said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.