Indian stock market benchmarks, Sensex and Nifty 50, are expected to open lower on Tuesday due to weak global market signals.

Trends on the GIFT Nifty also suggest a sluggish start for the Indian indices, with the GIFT Nifty trading around the 24,856 level, a discount of about 70 points from the previous Nifty futures close.

On Monday, the domestic equity market finished flat after the Nifty 50 reached a record high near the 25,000 mark.

The Sensex gained 23.12 points, or 0.03%, to close at 81,355.84, while the Nifty 50 edged up by 1.25 points, or 0.01%, finishing at 24,836.10.

On the daily chart, the Nifty 50 created a small negative candle with slight upper and lower shadows.

“From a technical standpoint, this formation suggests a high wave or bearish counterattack candle pattern (though not a classical one). This market behavior indicates potential for further consolidation in the short term. The positive chart pattern of higher tops and bottoms remains intact on the daily chart, and the Nifty is in the process of establishing a new higher top. Although it has reached new highs, there is currently no confirmation of a reversal pattern forming at these elevated levels,” explained Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

Nifty 50 Prediction

On July 29, the Nifty 50 index experienced minor profit-taking from its new highs and ended the day flat, despite reaching an all-time high of 24,999.

“The recent price action may appear minor for the benchmark, but the overall trend remains positive, with bulls clearly leading in the advance-decline ratio. Moreover, mid and small-cap stocks are performing strongly, outpacing the major indices and bolstering market sentiment. For the Nifty 50, intermediate support is around 24,600, with critical demand expected near the 24,500 zone in the near term,” stated Osho Krishan, Senior Analyst - Technical & Derivatives at Angel One Ltd.

“The recent price action may appear minor for the benchmark, but the overall trend remains positive, with bulls clearly leading in the advance-decline ratio. Moreover, mid and small-cap stocks are performing strongly, outpacing the major indices and bolstering market sentiment. For the Nifty 50, intermediate support is around 24,600, with critical demand expected near the 24,500 zone in the near term,” stated Osho Krishan, Senior Analyst - Technical & Derivatives at Angel One Ltd.

He noted that on the higher end, the 25,000 level is now within reach, and a decisive breakout could trigger the next phase of the rally, potentially advancing towards the 161.8% retracement level of last week’s swing, which stands at 25,340 on an intermediate basis.

Given the current high market valuations, VLA Ambala, Co-Founder of Stock Market Today, advises adopting a cautious approach to mitigate risks.

“Despite this, the valuation of certain companies and stocks remains appealing, attracting interest from many investors and traders. In the coming days, sectors such as Media, Pharma, Banks, Auto, and Metals are likely to be under focus. Considering these factors, the Nifty could find support around 24,780 and 24,700, while facing resistance at approximately 24,950 and 25,080 in the next trading session,” Ambala added.