The Indian stock market is expected to begin Tuesday's trading session on a flat note, mirroring mixed signals from global markets. The benchmark indices, Sensex and Nifty 50, are likely to see little change at the opening bell, as indicated by trends in Gift Nifty futures.
Market Outlook and Technical Analysis
On Monday, the domestic equity benchmarks closed with minor losses. The Sensex declined by 64.77 points, or 0.08%, to settle at 85,641.90. Meanwhile, the Nifty 50 dropped 27.20 points, or 0.10%, ending the day at 26,175.75. Both indices formed bearish candlestick patterns on their daily charts, suggesting a potential pause in the recent trend or further weakness.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that the intraday market formation appears range-bound. He identified 85,500 and 85,000 as crucial support zones for the Sensex, with resistance expected in the 86,000 to 86,200 range. A fall below the 85,000 mark could make the current uptrend vulnerable.
Nifty 50: Key Levels to Watch
For the Nifty 50, analysts emphasize a tight trading range in the near term. Derivatives data shows significant call writing at the 26,250 strike and strong put interest at 26,150. A sustained close above the 26,300 level is considered essential to revive bullish momentum.
Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking, advises caution. He states that chasing the index at elevated levels is not advisable due to an unfavorable risk-reward setup. He suggests waiting for a meaningful pullback before entering fresh positions. Immediate support is seen at 26,120, followed by 26,000.
Market analyst Mayank Jain from Share.Market concurs, highlighting that the 26,300–26,350 zone is a crucial resistance-turned-trigger. A decisive breakout above this band could open the path towards 26,500 and beyond.
Bank Nifty Faces Selling Pressure
The banking index also faced headwinds on Monday. The Bank Nifty fell 71.35 points, or 0.12%, to close at 59,681.35. It formed an Opening Marubozu candlestick pattern, indicating selling pressure at higher levels.
According to Hrishikesh Yedve of Asit C. Mehta Investment Intermediates, the upside for Bank Nifty remains capped below 60,114 in the short term. Immediate support lies near 59,400, followed by 59,000. Traders are recommended to adopt a strategy of buying near support and selling near resistance.
Sudeep Shah from SBI Securities pointed out that the 60,000 - 60,100 zone will act as a significant hurdle. A sustainable move above 60,100 could trigger a rally towards 60,600. On the downside, support is placed between 59,300 and 59,200.
Global Cues and Investor Sentiment
The muted start forecast is primarily influenced by mixed global market cues. The Gift Nifty, which trades on the NSE International Exchange, was trading around the 26,329 level, reflecting a slight discount compared to the previous close of Nifty futures.
While the short-term sentiment remains positive, analysts urge investors to remain vigilant. The consensus is that the market is in a consolidation phase, awaiting a clear directional breakout. Investors are advised to consult with certified experts before making any investment decisions, as the views expressed are those of individual analysts and broking firms.
