The Indian stock market is expected to begin today’s session on a muted note as traders await the Reserve Bank of India’s Monetary Policy Committee (MPC) announcement. Early cues from GIFT Nifty point to a flat start, trading 4 points lower at 26,188 from its previous Nifty futures close.
With the repo rate expected to remain at 5.50%, focus will be on the RBI’s commentary on liquidity conditions, inflation management, and economic projections.
On Thursday, the benchmarks saw a rebound after a four-session losing streak, with the Nifty 50 closing above 26,000 at 26,033.75. The Sensex gained 158.51 points, or 0.19%, to close at 85,265.32.
The Sensex managed to hold above the 85,000 level, which analysts believe is a sign of underlying stability despite ongoing selling pressure near resistance zones.
The support is around 85,000-84,800 band. Should it slip below 84,800, the next downside levels may emerge near 84,500 and 84,400.
On the upside, the zone between 85,500 and 85,650 remains as a resistance. A break above this ceiling could open the gates toward 86,000-86,200.
The Nifty 50 ended its losing streak with a modest positive candle on the daily chart, though it still trades below its shorter-term moving averages.
The support is seen near the 26,000-25,950 region, with the recent swing low of 25,842 acting as a key structural support. If the index dips below 26,000, a swift pullback toward 25,950 or 25,900 could follow.
Resistance is expected around 26,100-26,150; a decisive break above this level could take the index toward 26,300.
Derivatives positioning reinforces the view of a tight trading band, with heavy call writing near 26,100 and firm put interest around 26,000.
The Bank Nifty closed slightly lower at 59,288.70, forming a Doji candle. The index continues to struggle below the supply-heavy zone of 59,500-59,600, keeping the near-term tone neutral to mildly negative.
Support is expected around 59,000-58,900; a breach below this may drag the index toward 58,500.
While a close above 59,350 has the potential to spark short-covering and push the index toward 59,500 -59,650.
IT stocks were the standout performers in the previous session, boosted by the depreciation of the Indian rupee and renewed optimism about potential rate cuts by the US Federal Reserve.
Defence stocks also witnessed healthy buying interest, aided by diplomatic developments such as Russian President Vladimir Putin’s visit to India.