Stock Market Update: Sensex Holds 77,000 Level While Crude Oil Volatility Forces Bank Nifty into an Indecisive Tussle

The Indian stock markets opened higher, tracking gains in global markets, with cautious underlying sentiment amid rising geopolitical tensions in the Middle East. At the open, Sensex rose 170 points, Nifty 50 gained nearly 50 points, and Bank Nifty advanced 160 points. This comes as the US dropped the 20% transit fees to cross the Strait of Hormuz.

On Tuesday, the Sensex fell 561.46 points, or 0.72%, to settle at 77,054.94, while the Nifty 50 declined 158.95 points, or 0.66%, to finish at 24,052.05. 

The Indian rupee opened at Rs. 96.17 against the US dollar, gaining 3 paise from its previous close of Rs. 96.20.

Foreign institutional investors (FIIs) sold Indian equities worth Rs. 739 crore on July 14, while domestic institutional investors (DIIs) remained net buyers, with an inflow of Rs. 2,927 crore.

Sensex Outlook

Technically, the Sensex formed a bearish candle on the daily chart, indicating further weakness from the current levels.

“The intraday market texture is non-directional; perhaps traders are waiting for either side to break out. 77,000 would act as a crucial support zone, while 77,300 would be the key resistance area for the bulls. Selling pressure below 77,000 is likely to accelerate, and the market could retest levels around 76,300-76,000. On the flip side, above 77300, the chances of hitting 77500-77800 would turn bright," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.

Nifty 50 Outlook

The Nifty 50 has entered a consolidation phase after snapping its three-session winning streak. The index formed a small bearish candle with a long upper shadow, indicating selling pressure at higher levels.

"We expect the index to extend the recent consolidation in the range of 23,800-24,350. Within the consolidation last Friday's gap area and Monday's low of 24,000-23,950 will act as immediate support, holding above the same will lead to a pullback towards 24,250-24,350 levels, being the upper band of the recent consolidation range," said Bajaj Broking Research.

Analysts point to the 24,000 to 23,950 zone as the immediate floor to watch. If the index manages to stay above this area, it could spark a recovery back toward the 24,250 to 24,350 range. On the flip side, if things slide further, a much stronger safety net is sitting down between 23,800 and 23,900.

That said, the market isn't out of the woods just yet. Experts emphasize that we won't see a real, sustained upward rally until the index makes a clean, decisive break above the 24,350 mark.

Also Read: US Stock Market Today: S&P 500 Rises as June Inflation Cools and Strong Bank Earnings Lift Stocks 

Bank Nifty Outlook

On Tuesday, Bank Nifty declined 669.15 points or 1.15% to close at 57,462.30, forming a bearish candle on the daily chart. The index slipped below the 57,500 mark, reflecting selling pressure in banking stocks.

According to Bajaj Broking, Bank Nifty is likely to stay stuck in a 56,500 to 58,700 trading range for a bit. If it can actually break out past 58,700, we could see a quick rally toward 59,300 and maybe even 60,000.

If things slide, 56,500 is the key floor to watch. Since that level aligns with both the 20-week and 50-week EMAs, as well as last week’s low, it’s a major demand zone where buyers are highly likely to step in and defend the index.