The Indian stock market will likely open flat or mildly negative since the investors remain cautious due to weak global signals, FII selling, and rupee depreciation. The benchmark indices are now at key technical levels after three sessions of decline.
The GIFT Nifty was trading at 25,875, 15 points lower than its previous Nifty futures close. Sectorally, the Nifty PSU Bank index increased by 1.3% and the Nifty Metal index added 0.25%, while the indices of Nifty Consumer Durables and Nifty Media saw a decrease of 1% and 1.7%, respectively.
During the previous session, the Sensex closed at 84,559.65, down by 0.14%, and the Nifty 50 also dropped 0.16% to 25,818.55.
The broader market generally underperformed, with mid-cap and small-cap indices declining by 0.54% and 0.73%, respectively. The sustained weakness erased nearly Rs. 1.6 lakh crore in investor wealth in a single session.
The Sensex has strong resistance near the 84,900 level. The index’s repeated failure to sustain prices above this zone has increased the probability of a decline in the near term.
A drop below 84,300 could cause further sell-off and subsequently drag the index toward 84,000-83,800, in line with the recent swing lows.
For the bulls, a clear break above 84,900 could shift sentiment and could push towards 85,200-85,400. The index is expected to remain volatile with a negative bias.
The Nifty 50 is trading in a tight range, oscillating between its 20-day and 50-day exponential moving averages, which often precedes a significant directional movement.
The immediate support is at 25,760-25,700. If the price drops below this level, it may weaken the bullish structure and drag the index to 25,450.
On the upside, 25,950-26,050 is the significant resistance zone, further supported by the high call open interest at the 26,000 strike. The sharp decrease in the Put-Call Ratio to 0.55 indicates growing caution.
In the Bank Nifty Index, the lowest Support Line is around 58800. Staying above that will see the Index move sideways in the short term or bounce back slightly.
A price dropping below 58800 would see increased selling through Levels in 58500 to 58000 and the 50-day Simple Moving Average of 58350.
Resistance Price Areas are between 60000 and 60120, which will be a significant Resistance Zone as far as Buyers go.
Also Read: US Stock Market Today: NASDAQ Declines 1.3%, as Tech Stocks Struggle with Earnings Misses
Mixed Market Sentiment remains globally. Oil prices are starting to bounce back with Brent Crude being approximately $59.60 and the Price of WTI is around $55.97 per barrel.
The rise in Crude can possibly affect the increase in Inflation and affect Market Sentiment further.
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