Indian Stock Market Braces for Flat Opening on Tuesday
The Indian stock market appears poised for a quiet start on Tuesday. Benchmark indices Sensex and Nifty 50 are expected to open flat, mirroring a lackluster trend in global markets. This muted sentiment is further reflected in the Gift Nifty futures, which were trading around the 25,595 level. This represents a slight discount of nearly one point compared to the previous close of Nifty futures.
Market Recap: A Downward Trend on Monday
Monday's trading session ended in negative territory for Indian equities. The benchmark Nifty 50 slipped below the 25,600 mark. The Sensex dropped 324.17 points, closing at 83,246.18, a decline of 0.39%. Similarly, the Nifty 50 settled 108.85 points lower at 25,585.50, marking a 0.42% fall.
Analyst Outlook: Key Levels for Sensex and Nifty
Market analysts are closely watching specific price levels that could dictate near-term movement.
For the Sensex, Mayank Jain from Share.Market identifies a crucial support zone between 83,000 and 82,800. He notes that the 83,000 strike holds the highest Open Interest, making it a vital level. On the upside, the 84,000 Call Option continues to have the highest OI, acting as a firm resistance ceiling.
Hitesh Tailor of Choice Broking points out that the Sensex formed a bearish candle on the daily chart. The intraday structure also shows weakness. Immediate resistance is seen near 83,700 to 83,800, a level that has repeatedly capped gains. With the index closing below recent highs and facing headwinds, the near-term bias remains cautious. Tailor suggests selective buying on dips could continue as long as key supports hold.
For the Nifty 50, Mayank Jain highlights that the 25,500 level holds the maximum Put OI for the current weekly expiry, potentially serving as a strong floor. Significant Call writing at the 25,800 strike may act as a major hurdle for any upward move.
Nagaraj Shetti of HDFC Securities observes that Nifty formed a negative candle with a lower shadow. The index is now at the lower end of its recent range (25,900 - 25,500) near crucial support at 25,500. However, no clear bottom reversal pattern has emerged yet. The underlying trend remains weak. A sustainable bounce from near 25,500 could initiate a short-term upmove. A break below 25,500, however, might trigger further weakness down to 25,200.
Nilesh Jain from Centrum Broking notes that Nifty managed to close above its 100-day moving average near 25,575, which now acts as immediate support, followed by the recent swing low around 25,473. The overall market structure looks weak, with sell signals on momentum indicators. A short-term pullback is possible, but the index needs to decisively cross above 25,700 to trigger a meaningful rally towards 25,900. Conversely, a breakdown below 25,575 could lead to further downside towards 25,450.
Bank Nifty Shows Signs of Consolidation
The Bank Nifty index closed 0.34% lower at 59,891.35 on Monday. It formed a bearish candle with a long lower shadow, indicating some buying at lower levels but hesitation at higher prices.
Sudeep Shah of SBI Securities states the market's underlying tone is one of consolidation. Key oscillators suggest sideways movement, with traders likely waiting for a decisive breakout. The index faces critical resistance between 60,200 and 60,300. A sustained close above 60,300 could propel it towards 60,800. On the downside, immediate support lies around the 20-day EMA zone of 59,600 to 59,500. A breach below this could invite corrective pressure.
Ponmudi R from Enrich Money echoes that a sustained breakout above 60,200 could lead to an upside move towards 60,500-60,800. A decisive breakdown below 59,500 may trigger fresh selling pressure towards 59,200-59,000. Overall, Bank Nifty shows relative resilience, with option data suggesting a well-defined near-term range.
Disclaimer: The views and recommendations presented are those of individual analysts or broking firms. Investors are advised to consult certified experts before making any investment decisions.
