Stock Market Update: Nifty, Sensex Set for Gap-Down Open as GIFT Nifty Drops 180 Points on Oil Spike, US-Iran Tensions

The Indian stock markets are expected to open lower amid weakness in global markets, as the escalating US-Iran conflict has kept the oil prices high and raised inflation concerns. GIFT Nifty also indicates a gap-down start, trading at 23,335 with a discount of 180 points from its previous Nifty futures close.

On Wednesday, the Sensex declined 303.67 points or 0.41% to settle at 74,346.17, while the Nifty 50 fell 77.95 points or 0.33% to close at 23,405.60.

The Indian rupee opened flat at Rs. 95.71 per dollar on Thursday against the previous close of Rs. 95.71.

Foreign investors (FIIs) net sold shares worth Rs. 5,617 crore, while domestic institutional investors (DIIs) net bought shares worth Rs. 5,741 crore on June 3.

Sensex Outlook

Technically, the Sensex formed a Dragonfly Doji-like candle on the daily chart, which suggests indecision among traders.

“As long as the market is trading above the 74,000 level, the pullback formation is likely to continue. On the upside, the market could bounce back to 74,600 and 75,000. On the flip side, below 74,000, the market could retest 73,700. Further downside may also continue, which could drag the index to 73,500. The intraday market texture is non-directional; hence, level-based trading would be the ideal strategy for day traders," said Shrikant Chouhan, Head of Equity Research at Kotak Securities. 

Nifty 50 Outlook

The Nifty 50 formed a doji candle with a long lower shadow on the daily chart, indicating strong buying demand around lower support levels. The traders continue to accumulate positions near the 23,200-23,000 zone.

Analysts expect the index to remain in a consolidation phase over the next few sessions unless a decisive breakout emerges. 

"Nifty has key support in the range of 23,200-23,000 being the confluence of the lower band of the 8th April bullish gap area, lower band of recent consolidation and the 61.8% retracement of the previous pullback (22,182-24,601). On the higher side, 23,750-23,800 is expected to act as resistance, being the confluence of the current week's high and 20-day EMA," said Bajaj Broking.

The brokerage further noted that a sustained move above 23,556 could trigger fresh buying momentum. On the downside, holding above 23,200 will remain crucial for the broader positive structure.

Also Read: US Stock Market Today: Wall Street Slips From Record Highs as Iran Conflict Pushes Oil Prices Near $100

Bank Nifty Outlook

On Wednesday, Bank Nifty rose 471.30 points or 0.88% to close at 54,185.95, forming a bullish candle with a lower wick on the daily chart, reflecting buying interest at lower levels. The index is expected to trade between 52,500 and 55,000 in the near term.

“The crucial support zone remains at 52,700-52,500, which coincides with the lower band of the April bullish gap and the 61.8% retracement level of the previous rally. On the upside, resistance is placed in the 54,600-55,000 range, where the current week's high and the 20-day exponential moving average converge, ” as per Bajaj Broking.