Indian Stock Markets Brace for Volatile Session on Tuesday
The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to experience volatility on Tuesday. Mixed global cues and cautious market sentiment are driving this outlook. US President Donald Trump recently announced fresh tariffs on countries doing business with Iran. This development has injected uncertainty into global markets.
Gift Nifty Signals Mildly Positive Start
Trends on Gift Nifty indicate a mildly positive opening for the Indian benchmark index. Gift Nifty was trading around the 25,910 level. This represents a premium of nearly 35 points from the Nifty futures' previous close.
On Monday, the Indian stock market ended higher. This move snapped a five-day losing streak. The Nifty 50 closed near the 25,800 level. The Sensex rose 301.93 points, or 0.36%, to close at 83,878.17. The Nifty 50 settled 106.95 points, or 0.42%, higher at 25,790.25.
Sensex Outlook and Open Interest Data
From an Open Interest perspective, the 83,500 and 83,000 strikes have seen fresh Put buildup. This indicates traders are shifting their base higher after yesterday's recovery.
Mayank Jain, Market Analyst at Share.Market, shared his views. He said resistance for Sensex is now pegged at the 84,000 and 84,500 Call strikes. As long as the Sensex sustains above 83,500, the bias for tomorrow remains cautiously bullish.
Hitesh Tailor, Research Analyst at Choice Equity Broking, provided additional insight. He noted that Sensex respected key support and resistance levels. It remained above the support zone of 83,300 – 83,400. This zone acted as a solid cushion on early weakness.
On the upside, resistance near 84,300 – 84,400 is expected to be the near-term hurdle. Upside efforts may face profit-booking or supply pressure there. With the late-session rebound and support holding, the structure still favors a buy-on-dips approach. This holds true provided the key support zone remains intact into the next trading sessions.
According to Mayank Jain, Sensex is now positioned to test the 84,400 – 84,500 range. This range previously acted as a strong support-turned-resistance.
Nifty 50 Analysis and Predictions
Nifty derivatives data for today's weekly expiry shows a significant shift. Mayank Jain highlighted that Nifty Put writing has surged at the 25,500 and 25,600 strikes. These levels will now act as the immediate floor. On the upside, 25,900 and 26,000 remain the primary resistance levels. Heavy Call Open Interest is still parked there.
The Nifty 50 index has formed a bullish 'hammer-like' candle. This suggests the five-day losing streak may have finally bottomed out.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, explained the technical picture. A long bull candle has formed on the daily chart with a long lower shadow. Technically, this market action indicates a significant turnaround in the market for the short term. This is a positive indication. One may expect further upside in the short term.
According to him, the underlying trend of Nifty 50 seems to have turned up post sharp weakness of last week. Having recovered from the key lower levels decisively, he believes Nifty 50 could advance towards the next hurdle of 26,000 - 26,100 levels in the next few sessions.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, pointed to a crucial hurdle. He believes the Nifty 50 faces a crucial hurdle at the 50-day EMA zone of 25,890 – 25,920. A sustained move above 25,920 could open the door for a sharp upside rally. Potential targets lie at 26,100 and beyond in the near term. On the downside, immediate support is placed around the 100-day EMA zone of 25,650 – 25,620. This will be a key level for traders to watch.
Bank Nifty Performance and Technical View
The Bank Nifty index ended 198.95 points, or 0.34%, higher at 59,450.50 on Monday. It formed a hammer candle on the daily chart. This indicates a strong recovery from the lower levels.
Vatsal Bhuva, Technical Analyst at LKP Securities, analyzed the index. Sharp buying emerged in the Bank Nifty index from lower levels. This helped it close above its falling trendline resistance and settle near its 20-day SMA. This indicates short-term recovery. On the hourly chart, the RSI has entered a bullish crossover. This suggests improving intraday momentum. However, on the daily chart, the RSI remains weak. It hovers around 51 and is still in a bearish crossover.
Given this mixed setup, he advises a cautious stance. He added that immediate support for the Bank Nifty index is placed at 58,900. Resistance is seen near the 59,500 levels.
Om Mehra, Technical Research Analyst at SAMCO Securities, noted key levels. As long as the Bank Nifty index holds above the 58,900 – 59,000 band, downside pressure remains contained. On the higher side, 59,700 – 59,800 continues to cap recovery attempts. Only a sustained move beyond this zone would signal a return of upward traction. Until then, Nifty Bank is likely to remain range-bound.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
