Gift Nifty Surges Above Key Levels: Can Sensex and Nifty 50 Reclaim Gains After US-Iran Volatility?

The Indian stock market indices, Sensex and Nifty 50, are poised for a potentially positive start on Friday. Investors are tracking global market momentum, even as lingering concerns regarding the US-Iran ceasefire cast shadows over early trading sentiment.

The indicators, particularly the Gift Nifty, suggest the benchmark indices are likely to open with upward momentum. The Gift Nifty itself was observed trading near the 23,942 level, marking a significant premium of nearly 81 points above the previous Nifty futures close.

This optimism follows a turbulent session on Thursday, when the Indian stock market experienced a notable downturn. The benchmark Nifty 50 settled 0.93% lower at 23,775.10, while the Sensex plunged by 1.20% to close at 76,631.65, amid fading hopes regarding the US-Iran ceasefire.

Assessing Technical Support for Nifty 50 and Sensex​

Analysis of the major indices points towards a phase of consolidation following prior sharp movements. For Sensex, analysts note that price action suggests consolidation after a notable rally, with both support and resistance forming distinct parameters.

Hitesh Tailor, Technical Research Analyst at Choice Equity Broking, identified the 75,900 - 76,300 zone as key support for Sensex. Conversely, resistance is anticipated between 76,900 - 77,100, where selling pressure could test upside moves. He suggests the near-term outlook remains cautiously positive but volatile due to ongoing geopolitical uncertainties.

The Nifty 50 index formed a bearish candle on its daily chart, signaling indecision near its higher levels. Nagaraj Shetti of HDFC Securities observed that this pattern indicates market consolidation following a sharp upward move.

Near-Term Targets for Nifty 50 and Bank Nifty Index​

For the Nifty 50, the market structure appears set for consolidation, with analysts noting that bearish chart patterns, such as lower tops and bottoms, appear to be negated. Near-term support is expected to emerge around the 23,500 level in the coming sessions.

Experts caution that a decisive breakout above 24,000 is crucial for triggering a potential short-covering rally towards the 24,500 zone. Furthermore, Nilesh Jain highlighted that a buy-on-dips strategy remains favorable, supported by constructive momentum indicators.

Shifting focus to the Bank Nifty, the index concluded Thursday 1.58% lower at 54,821.70, forming a bearish candle. Despite this weakness, multiple analysts maintain that the short-term structure remains partially intact.

Sudeep Shah of SBI Securities pointed out that the 55,300 - 55,400 range should act as immediate resistance. On the downside, a crucial support zone is pegged between 54,400 and 54,300 for the index to hold its ground.

Om Mehra of SAMCO Securities corroborated the consolidation view, noting the RSI near 50 suggests neutral momentum. He identified 55,200 - 55,500 as immediate resistance, while the 53,500 - 53,200 band represents critical support to maintain any recovery phase.