Stock Market Update: Nifty 50, Sensex will Likely Open Higher Amid Talks of Renewed Peace Talks Between US-Iran

After Tuesday's market close on the account of Dr. Bhimrao Ambedkar Jayanti, the Indian stock market will resume today and is likely to open higher amid hopes of renewed peace talks between US-Iran in the Middle East conflict. GIFT Nifty also indicates gap-up open, trading at 24,202 with a premium of 324.5 points from its previous Nifty futures close.

On Monday, the benchmark indices closed sharply lower with Nifty 50 closing below the 23,900 level  and Sensex plunged 702.68 points or 0.91% to settle at 76,847.57.

Meanwhile, since the start of US-Iran war, Foreign Institutional Investors (FIIs) have withdrawn around $18 billion from Indian markets. This caused Nifty to fall over 9% from its 52-week high.

Also, Brent crude futures fell ‌0.55% to $94.27 a barrel after a 4.6% decline in the previous session. US West Texas ‌Intermediate crude was down $1.04 or 1.1% to $90.24 after dropping 7.9% ‌the ⁠session before.

Sensex Outlook

Technically, in the previous session, Sensex declined below 77,000, which suggests near-term weakness. 

Immediate support for the index is seen at 76,300-76,400, a breakdown below the support could accelerate the decline to lower levels near 76,000.

Immediate resistance is placed around 77,300-77,400, the index could face selling pressure in case of a pullback toward the resistance.

Nifty 50 Outlook

Gaurav Udani, Founder, ThinCredBlu Securities Ltd, said, “Nifty is expected to open sharply higher around 24,200, up nearly 375 points, supported by easing crude oil prices and improving global sentiment. The strong gap-up indicates renewed buying interest and a shift back towards a positive bias after recent volatility. However, with the index approaching higher levels, price action near resistance will be crucial. 

Technically, 24,400 stands out as a key resistance. A sustained move above this level could trigger further momentum, potentially pushing Nifty towards the 24,800 zone in the near term. On the downside, 24,000-23800 will act as immediate support, where dips could attract buying interest. Given the sharp opening, traders should avoid chasing at higher levels and instead look for buy on dips opportunities with proper risk management. Overall, sentiment remains positive, but sustainability above key resistance will determine the next leg of the move.”

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Bank Nifty Outlook

The Bank Nifty index settled at 55,605.05, down 0.55% in the last session. The index formed a bullish candle with a lower high and lower low on the daily chart.

The 55,900-56,000 range will likely act as a crucial resistance level for the index. A sustained close above this range could stretch the pullback toward 56,600, followed by 57,000.

On the downside, the 55,100-55,000 zone will act as a key support level. A sustained hold above this range is crucial for the current recovery phase to extend.