📷 Image Credits: Mint
The Indian stock market benchmark indices, Sensex and Nifty 50, are poised to open higher on Tuesday following gains in global markets. The trends on Gift Nifty also suggest a positive start for the Indian benchmark index, trading around 23,590 level with a premium of nearly 130 points from the Nifty futures’ previous close.
The domestic equity benchmark indices ended higher last week with the Nifty 50 settling at a fresh closing high. The Sensex also saw an uptick, closing at 76,992.77, while the Nifty 50 settled at 23,465.60. The Indian stock market was closed on Monday, June 17, for Eid ul-Adha 2024.
Nifty 50 formed a long legged doji on the daily charts, indicating a possible reversal in the near future. Analysts suggest that the market could see new highs, but a cautious approach is recommended as the uptrend may be losing steam.
In terms of sector performance, the BSE Bankex and BSE IT sectors outperformed, while BSE Auto and BSE Oil & Gas sectors saw a decline. Foreign portfolio investors (FPIs) continued to show interest in Indian equities, with a net inflow of $1.82 billion last week.
Looking at the short-term view, the Nifty is expected to trade within a range of 23,300-23,650, with support at 23,300 and resistance at 23,650. A break above 23,650 could lead to further upside towards 24,100, while a break below 23,300 might signal a downside move.
The Nifty Bank index also surged to a new high, closing at 51,661.45, up 3.32% last week. The outlook for the Nifty Bank is positive, with supports at 51,200 and 50,800. A breach of 52,000 could take the index up to 52,700, followed by a corrective fall.
On the medium-term view, both Nifty and Sensex face crucial resistances, with the Nifty Bank index approaching 53,000. A reversal from these levels could trigger a corrective fall in the coming months. Investors are advised to remain cautious and watch for key support and resistance levels. Stay tuned for more updates on the Indian stock market.
