Stock Market Update: Nifty 50, Sensex Likely to Open on a Cautious Note Amid Global Uncertainty

Indian markets are set for a muted open as US-Iran tensions weigh on global sentiment. GIFT Nifty is at 24,071.5, up 26.5 points from its previous close. Midcap and Smallcap indices both gained around 0.5%.

Foreign institutional investors (FIIs) net bought shares worth Rs. 2,836 crore. Domestic institutional investors (DIIs) net bought shares worth Rs. 4,764 crore

Additionally, the Indian rupee opened near a record low at Rs. 95.33 per dollar on Tuesday against the previous close of Rs. 95.08.

Sensex Outlook

Technically, Sensex managed to close above the 77,000 mark after witnessing profit booking at higher levels.

“The short-term texture of the market is non-directional and is likely to remain so in the near future. For day traders now, the 77,000 level and the 20-day SMA will act as key support zones. Above these levels, the market could continue its positive momentum towards 77,700-78,000,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

The Nifty 50 formed a small bullish candle with a long upper shadow on the daily chart, indicating volatility at higher levels with a positive bias. The index continues to consolidate around its 20-day exponential moving average (EMA).

"In line with our expectations, Nifty is witnessing consolidation in the broad range of 23,600-24,400 amid stock-specific action as we progress through the quarterly earnings session," Bajaj Broking Research

A sustained move above Monday's high of 24,290 could push the index towards the upper end of the range near 24,400. On the downside, a close below the recent support zone around 23,800 may trigger further weakness towards the 23,600 levels.

"Short-term support is positioned around the 23,600-23,500 range, being the confluence of the recent major low and 38.2% retracement of the last 3 weeks' pullback (22,183-24,601)," Bajaj Broking Research.

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Bank Nifty Outlook

On Monday, the Bank Nifty index rose 15.15 points or 0.03% to 54,878.50, forming a small bearish candle with a long upper shadow, signalling selling pressure at higher levels.

“The selling pressure coincided with the 20-day EMA, and the index’s failure to sustain above this key short-term moving average suggests underlying weakness in the near term. Going ahead, the immediate support for Bank Nifty is placed in the 54,400-54,300 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 53,900, followed by 53,500 in the short term. On the upside, the zone of 55,300-55,400 is likely to act as an immediate resistance," said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.

On the upside, a breakout above 55,602 could lead to a short-term pullback towards the 56,500 levels.