Stock Market Update: Nifty Opens 0.09% Lower, Sensex Falls 91.25 points Amid Tensions in the Middle East

Indian markets opened lower on Tuesday as US-Iran tensions kept sentiment cautious. Nifty 50 opened 22.45 points or 0.09% lower, Sensex fell 91.25 points and Bank Nifty gained 0.14%.

On Monday, the Sensex fell 442.93 points, or 0.57%, to settle at 77,708.52, while the Nifty 50 declined 95.80 points, or 0.39%, to finish at 24,238.50. The Indian rupee opened at Rs. 96.41 per dollar on Tuesday versus previous close of Rs. 96.45.

Midcap gained 0.6%. Smallcap ended marginally positive. FIIs sold Rs. 1,121 crore on July 20. DIIs absorbed that and more, buying Rs. 1,312 crore. 

Sensex Outlook

Technically, the Sensex formed a recovery candle after a gap-down open, indicating buying interest emerging at lower levels.

“The key levels to watch are 76,800 on the downside and 78,300 on the upside. As long as these levels remain intact on a closing basis, stock-specific action is likely to dominate. A close below 76,800 could open the doors for a decline towards 76,200, whereas a sustained move above 78,300 may pave the way for a retest of 78,700. The preferred strategy is to reduce weak long positions in the 78,300-78,600 zone, while remaining selective in accumulating quality stocks on declines," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

Nifty 50 formed a small-bodied candle on the daily chart and closed within the previous session’s range, reflecting continued indecision. 

“A small green candle was formed on the daily chart that closed beside the long bull candle of Friday. Technically, this market action indicates an inside day type candle formation which is reflecting a range bound movement in the market with weak bias. The negative global sentiment has not impacted much on our markets so far,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

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Bank Nifty Outlook

On Monday, Bank Nifty formed a small-body bullish candle with wicks on either side, highlighting intraday indecision.

"Going ahead, the immediate resistance for Bank Nifty is placed in the 58,300-58,400 zone. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 58,800, followed by 59,200 in the short term. On the downside, the immediate support for Bank Nifty is placed in the 57,600-57,500 zone," it added.