Nifty 50, Sensex Outlook: Key Factors to Watch in Indian Stock Market Trading on February 24

Indian Stock Market Outlook

Market Overview

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Tuesday, tracking weakness in global markets. The trends on Gift Nifty indicate a negative start for the Indian benchmark index.

Previous Day's Performance

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On Monday, the Indian stock market ended higher, with the benchmark Nifty 50 closing above 25,700 level. Sensex jumped 479.95 points, or 0.58%, to close at 83,294.66, while Nifty 50 settled 141.75 points, or 0.55%, higher at 25,713.00.

Sensex Prediction

Analysts expect Sensex to trade above the 20-day SMA or 83,000, with 83,600 as the crucial resistance zone for short-term traders. A sustained breakout above 84,000 may lead to an upside rally towards 85,000 and subsequently 85,500.

Nifty 50 Prediction

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Nifty 50 index formed a small-bodied bullish candle with long upper and lower shadows on the daily chart, indicating indecision at higher levels. A decisive move above the hurdle of 25,900 levels is likely to change the trend on the upside.

Bank Nifty Prediction

Bank Nifty index ended 92.25 points, or 0.15%, higher at 61,264.25 on Monday, forming a bullish candle with a long upper shadow on the daily chart. The region of 61,500 – 61,600 will act as a major hurdle for the Bank Nifty index.

Derivatives Segment

Significant put writing at the 25,700 strike, along with aggressive call writing at 25,750 and 25,800, defines a short-term consolidation range. The market is looking relatively stable and positive, with a measured positive near-term outlook and favoring buying on pullbacks while major support zones are respected.

Volatility

The volatility gauge India VIX has eased to 14.10, however, a sustained move below 13 is necessary for bulls to regain firm control.