Stock Market Update: Nifty 50, Sensex Poised for a Soft Opening Amid Global Cues

Indian equity markets are anticipated to begin lower on Tuesday as global indicators remain mixed and investors are cautious of upcoming macroeconomic data. Early trends on the Gift Nifty, near 25,865, indicate a negative opening by 34 points from the previous close of Nifty futures. 

On Monday, domestic benchmarks ended on a flat but positive note, with Sensex rising 39.78 points or 0.05% to 83,978.49, and Nifty 50 adding 41.25 points or 0.16% to close at 25,763.35, supported by selective buying in PSU banks and midcap stocks.

Sensex Outlook

Analysts suggest Sensex has established an intraday reversal pattern after recent consolidation. On the daily chart, a small bullish candle hints at recovery potential.

Support zones lie at 83,700 and 83,500, while resistance is seen near 84,300 and 84,700. As long as the index sustains above 83,500, a short-term pullback could extend toward 84,700. Falling below that level may trigger weakness toward 83,200.

Nifty 50 View

Nifty 50 made a green candle on the daily chart, indicating fresh buying interest near support. Analysts believe the minor correction might be ending, keeping the short-term uptrend intact.

Analysts expect possible retests of the 26,000-26,100 zone, with support being around 25,650-25,600. A breakout above 25,800 would open the potential for further gains, while closing below 25,540 may be cause for concern.

Meanwhile, the volatility index (VIX) rose to 12.50, reflecting increased uncertainty among traders.

Hrishikesh Yedve of Asit C. Mehta Investments said that holding above 25,645 could trigger a relief rally, whereas a sustained drop might push the index toward 25,400-25,450, a key demand zone.

Bank Nifty View

Bank Nifty ended Monday at 58,101.45, up 0.56%, forming a strong bullish candle after two subdued sessions.

Support is seen at 57,650-57,700 and resistance at 58,250-58,350. A decisive breakout above 58,350 could push the index toward the 59,000 level in the short term.  

Bank Nifty continues to trade within a symmetrical triangle, signaling a potential breakout. The RSI has made a recovery from lower levels, and MACD remains positive, suggesting underlying strength.

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Sectoral Trends

There was outperformance in broader markets with the Nifty Midcap100 and Smallcap100 rising by 0.77% and 0.72%, respectively. Stocks in public sector banks, realty, telecom, and pharma were particularly strong, while IT pick-up, FMCG, and consumer durability defenses underperformed slightly. 

In conclusion, overall, analysts remain optimistic for the future, but expect continued volatility for the foreseeable future and maintain their stance that one should re-enter quality stocks on dips.