The likely trend for Indian equities on Friday morning is for them to remain relatively unchanged, with an optimistic tone based on the GIFT Nifty, as it indicates a small uptick in futures trading on GIFT Nifty vs. Nifty, with a premium of Rs. 24 at 26,414.

For Thursday's closing price, Sensex closed at 85,720.38 (+0.13%, +110.87) and Nifty 50 closed at 26,215.55 (+0.04%, +10.25). Sensex's all-time high was 86,055.86, but it fell from that level.

Sensex Outlook

Short-term outlook for the Sensex is still constructive unless the price of the Index falls below its important support levels. Analysts expect that to maintain the bullish sentiment, the bulls need to hold the 85,500-85,200 zone, as these two price points represent strong support levels. 

If the price drops below the 85,200 strong support level, this will initiate further selling pressure and lead to a more bearish market.

On the upper side, sellers will likely be positioned around 86,000-86,300, with the possibility of continued sideways movement.

Nifty 50 Outlook

Nifty 50 index created a very small candle on the daily charts as a result of the formed candlestick patterns but still indicates the consolidation period that has taken place since the breakout of the Nifty all-time highs. 

The intraday high of 26310.45 indicates that despite reaching these levels, additional follow-through buying did not occur; thus showing that there is still uncertainty on what direction the index may take over the coming weeks. 

Before the Nifty 50 resumes its prior upward trend, it could continue to experience sideways movement before accomplishing this.

Immediate support levels for the Nifty 50 index are between 26100 and 26050, while upside targets of 26350 and/or 26600 could be achieved if the momentum continues.

Bank Nifty Outlook

Bank Nifty index rose 209.25 points (0.35%) today to close at 59737.30, which created a bullish candle that formed a higher high and a higher low- marked by continuing to form higher-highs and higher-lows. The Bank Nifty also reached a new peak of 59866.60.

According to analysts, as long as the Bank Nifty remains above 59400 and continues to increase, it is expected to extend its gains. The breakout above the 59900-60000 may develop the potential for further upward movement, potentially allowing for targets of 60400 and possibly 61000 in upcoming sessions. 

The Bank Nifty Key-support levels can be found between 58800-58600, where prior swing lows were established.

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Sectoral view

Sectoral performance was mixed. oil and gas, realty, energy and consumer durables sectors all had negative returns of around 0.5%. The media, IT and private bank sectors outperformed. 

The midcap index continued to be range-bound while small-cap stocks fell around 0.5% indicating selective risk being taken by investors.