Stock Market Update: Nifty Eyes 24,000, Sensex 76,800 as F&O Expiry Volatility Hits

The Indian stock market is likely to open on a flat note amid mixed global signals as investors await details on the US-Iran peace deal. GIFT Nifty also indicates a muted start, trading at 23,932 with a discount of around 15 points from its previous Nifty futures close.

On Monday, the Sensex jumped 736.38 points or 0.97% to settle at 76,264.33, while the Nifty 50 rose 231 points or 0.98% to close at 23,853.90.

The Indian rupee opened higher at Rs. 94.63 per dollar on Tuesday versus the previous close of Rs. 94.71.

Foreign institutional investors (FIIs) purchased equities worth Rs 15,650.20 crore and sold shares worth Rs 15,450.15 crore, resulting in net inflows of Rs 200.05 crore. Domestic institutional investors (DIIs) remained strong buyers, recording net purchases of Rs 3,189.26 crore.

Sensex Outlook

Technically, the Sensex formed a small-bodied bearish candle on the daily chart, indicating profit booking.

For Sensex, 76000 and 75700 would act as crucial support zones for the market. As long as the market is trading above these levels, the bullish trend is likely to continue. On the higher side, 76,800 and 77,000 remain key resistance levels. However, if the market falls below 75,700, sentiment could change. Below this level, traders may prefer to exit their long positions," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

Nifty 50 formed a bearish candle with a higher high and a higher low and a bullish gap below its base signaling a positive bias and mild profit booking at higher levels around the 24,000 levels. The index continues to sustain itself above the 20- & 50-day EMAs.

"Volatility is likely to be high in Tuesday's session on account of the Nifty weekly F&O expiry. We believe the index will consolidate with a positive bias in the range of 23,600-24,100," said Bajaj Broking Research.

The brokerage further added that immediate bias remains positive above Friday's breakout area of 23,500-23,600. On the higher side, resistance is placed at 24,000-24,100 levels being the confluence of the higher band of the last 2 months falling channel and the measuring implication of the recent range breakout (23,050-23,550).

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Bank Nifty Outlook

On Monday, Bank Nifty rose 384 points or 0.68% to close at 57,198.80, forming a bearish candle with a bullish gap below its base, signaling positive bias.

"We expect the index to maintain an overall positive bias and head towards 58,300 levels in the coming sessions, being the measuring implication of the last four-week range breakout (52,700-55,500). Index sustaining above 55,500 will keep the overall bias positive and any dips should be viewed as buying opportunities. Only a decisive breach below the 55,500 support level would negate the positive outlook," said Bajaj Broking.