Indian Stock Market Outlook: Nifty 50 and Sensex Forecast for 5 May
Indian Stock Market Likely to Open Lower Amid Escalating US-Iran War
The Indian stock market benchmark indices, Sensex and Nifty 50, are expected to open lower on Tuesday, following weak global market cues due to the escalating US-Iran war in the Middle East. Trends on Gift Nifty indicate a negative start for the Indian benchmark index, trading around 24,047 level, a discount of nearly 159 points from the Nifty futures' previous close.
On Monday, the Indian stock market ended higher, but off-highs, with the benchmark Nifty 50 closing above 24,100 level. The Sensex rallied 355.90 points, or 0.46%, to close at 77,269.40, while the Nifty 50 settled 121.75 points, or 0.51%, higher at 24,119.30.
| Index | Previous Close | Today's Prediction |
|---|---|---|
| Sensex | 77,269.40 | 77,000 - 78,000 |
| Nifty 50 | 24,119.30 | 23,800 - 24,800 |
| Bank Nifty | 54,878.50 | 54,000 - 57,500 |
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According to analysts, Sensex witnessed profit booking at higher levels, but managed to close above the 77,000 mark, which is largely positive. For day traders, the 77,000 level and the 20-day SMA will act as key support zones. Above these levels, Sensex could continue its positive momentum towards 77,700 – 78,000.
On the other hand, if Sensex falls below the 20-day SMA or 76,800, it could retest the levels of 76,500 – 76,300. Nifty 50 index formed a small bullish candle with a long upper shadow, highlighting intraday volatility as the index consolidates with a positive bias around the 20 days EMA.
Nilesh Jain, VP- Head of Technical and Derivative research at Centrum Finverse Ltd., noted that the immediate psychological support for Nifty 50 is seen at 24,000, followed by the 21-DMA at 23,900. A decisive breakout above 24,200 is essential to extend the upmove towards 24,500 levels.
Bank Nifty index ended 15.15 points, or 0.03%, higher at 54,878.50 on Monday, forming a thin-bodied candle with a clear upper wick, reinforcing the rejection at higher levels. The immediate support for Bank Nifty is placed in the 54,400 – 54,300 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 53,900, followed by 53,500 in the short term.
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| Index | Prediction |
|---|---|
| Bank Nifty | 54,000 - 57,500 |
According to Bajaj Broking Research, Bank Nifty index is expected to extend consolidation in the broad range of 54,000 - 57,500 amid stock-specific action as we progress through the quarterly earning session of the banking stocks.
Investor Takeaway
Expect a negative start for the Indian benchmark index.
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