The Indian stock markets are poised for a lower open on Wednesday after fresh US strikes on Iran following drone attacks on commercial vessels in the Strait of Hormuz. GIFT Nifty futures are trading at 24,239.5, reflecting a discount of 144 points from the previous Nifty futures close, signaling a gap-down start.
On Tuesday, late profit-booking erased early gains, pulling the Sensex down 104.35 points to settle at 78,180.72, while the Nifty 50 slipped 0.13% to close just below the 24,400 mark. Mid-cap and small-cap indices faced heavier selling, dropping 0.4% and 0.55% respectively. Foreign institutional investors bought a net Rs 393.19 crore in cash markets, nearly offsetting the Rs 383.43 crore sold by domestic institutions.
Sensex Outlook
Technically, the Sensex formed a bearish candle on the daily chart, indicating potential further weakness. Shrikant Chouhan, Head of Equity Research at Kotak Securities, said,
“For day traders, 77,700 will act as a crucial support zone. Above these levels, Sensex could retest 78,400-78,600. On the flip side, if the index falls below 77,700, it could witness a sharp intraday dip towards 77,400-77,100.”
Nifty 50 Outlook
The Nifty 50 has entered a consolidation phase after a rally of nearly 1,500 points over the past five weeks. Bajaj Broking Research noted,
“We believe the overall structure is positive, and dips towards the 24,200-24,000 should be used to accumulate quality stocks in a staggered manner. On the higher side, only a sustained move above 24,600 will signal extended gains towards 24,800 levels, being the trendline resistance joining the previous major breakdown area.”
The brokerage expects Nifty to trade within the 24,200-24,600 range in the coming sessions. A decisive breakout above 24,600 could pave the way for 24,800, while the 24,200-24,000 zone is likely to act as key support.
Bank Nifty Outlook
On Tuesday, Bank Nifty declined 90.80 points or 0.16% to close at 58,200.70, forming a bearish candle on the daily chart. Bajaj Broking said,
“A decisive move above the recent swing high of 58,700 will strengthen the bullish setup and can pave the way for an advance towards 59,200 and 60,000 in the coming weeks, which coincide with the 138.2% and 150% external retracement of the previous decline from 57,456 to 52,783. Failure to move above 58,700 will signal extension of the last 8 sessions’ consolidation in the range of 57,000-58,700.”
Disclaimer: This article is for informational purposes only and does not constitute investment advice. The stocks and cryptocurrencies mentioned involve risk. Conduct your own research before making any investment decisions.
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