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Indian Markets Brace for Cautious Open Amid Global Jitters
8 May
Summary
- Indian stock markets expected cautious opening Thursday.
- Sensex and Nifty 50 closed higher on Wednesday.
- Bank Nifty shows strong breakout signaling improved momentum.
Indian equity benchmarks, the Sensex and Nifty 50, are anticipated to commence Thursday's trading session with caution. This subdued outlook is attributed to mixed global market cues, primarily influenced by the ongoing US-Iran tensions. Trends observed in Gift Nifty further support the expectation of a flat opening for Indian indices.
Wednesday saw a strong upward movement in the Indian stock market. The Sensex surged by 940.73 points, closing at 77,958.52, while the Nifty 50 settled 298.15 points higher at 24,330.95, surpassing the 24,300 mark.
Analysts suggest that the current uptrend is likely to persist. For Sensex, crucial support is noted at 77,500 and 77,300, with potential rallies extending to 78,300-78,500. A move below 77,300 could weaken the uptrend.
Nifty 50 has approached the resistance level of 24,300. A sustained move above this could propel the index towards 24,600-24,800, with immediate support at 24,200. The index has established a strong support zone around 24,000. Easing volatility, with India VIX declining sharply, is expected to support bullish momentum.
The Bank Nifty index has achieved a decisive breakout above its recent consolidation range of 55,602 - 54,222. Closing above its 20-day EMA with strong volumes signals improving momentum. Immediate resistance is seen between 56,300-56,400, with potential targets at 56,700 and 57,000. Support lies around 55,600-55,500. A breakout above 56,475 could lead to further upside towards 57,500.
