Indian stock markets are expected to open on a muted note Monday amid mixed global cues. GIFT Nifty is trading at 24,332.5, indicating a flat start with a discount of 22.5 points from the previous Nifty futures close.
On Friday, the Sensex rose 261.79 points (0.34%) to settle at 77,763.91, while the Nifty 50 advanced 95.15 points (0.39%) to finish at 24,270.85. Broader indices underperformed, with the Nifty midcap index ending marginally lower and the smallcap index flat.
The Indian rupee opened flat at Rs. 95.23 per dollar on Monday against Friday’s close of Rs. 95.22. Foreign institutional investors (FIIs) turned net buyers on July 3, purchasing shares worth Rs. 1,355.33 crore, while domestic institutional investors (DIIs) were net sellers to the tune of Rs. 1,953.89 crore.
Sensex Outlook
Technically, the Sensex rose around 1% last week, forming a bullish candle on weekly charts with a higher bottom formation—a largely positive sign. “The short-term market texture is positive, but the ideal strategy for traders would be to buy on dips and sell on rallies. On the downside, 77,300 and 76,700 are key support zones, while 78,400-79,000 are key resistance areas. Below 76,700, sentiment could change, potentially retesting 76,100-75,900,” said Amol Athawale, VP Technical Research, Kotak Securities.
Nifty 50 Outlook
Nifty 50 has strengthened its short-term trend after closing above last month’s high. The index advanced for three consecutive sessions and finished above the critical 24,261 level. Although Friday’s trading formed a bearish candle as the market gave up some gains, the broader short-term trend remains positive.
Bajaj Broking Research noted that “the index during the current week generated a bullish crossover of the 20- and 50-day EMA, highlighting continuation of positive momentum. In the coming session, Friday’s gap area will act as immediate support; holding above that signals an extension of the up move toward 24,380 and 24,500.” The brokerage expects Nifty to gradually move toward the 24,500-24,600 zone in the near term. A decisive break above 24,600 could target 24,800. Immediate support is near 24,050, with stronger support between 23,800 and 23,900.
Bank Nifty Outlook
On Friday, Bank Nifty declined 93.15 points (0.16%) to close at 57,938.50, forming a small bearish candle. For the week, the index ended with a loss of 0.41% and formed a small bearish candle on the weekly timeframe with a long lower shadow, highlighting indecisiveness.
Bajaj Broking Research said, “A move above last week’s high of 58,400 will open further upside toward 59,200 and 60,000 in the coming weeks, being the 138.2% and 150% external retracement of the previous decline from 57,456 to 52,783. Failure to move above last week’s high is likely to keep the index consolidating within the 57,000-58,400 range.” The brokerage identified the 57,000-56,800 region as key support for Bank Nifty, adding that the broader outlook for banking stocks remains positive and any short-term consolidation could offer accumulation opportunities.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research before making any investment decisions.
