The Indian stock market opened slightly lower as unchanged Federal Reserve rates, elevated crude oil prices, and high US bond yields continue to restrict broader risk-taking. Nifty 50 opened 8.2 points lower at 22,690.65 from the previous day’s close, while Bank Nifty started at 54,175.60, down 91.8 points. Sensex edged up by 22.44 points to 73,268.47.
The broader markets outperformed the main indices, with the Nifty midcap index rising 0.4% and the smallcap index jumping 0.9%. The Indian rupee opened higher by 6 paise at Rs. 95.17 per dollar on Thursday against Wednesday's close of Rs. 95.23.
Foreign institutional investors (FIIs) extended their buying streak on October 28, purchasing equities worth Rs. 871 crore, while domestic institutional investors (DIIs) also turned net buyers, investing Rs. 643 crore in equities during the session.
“For the coming session, the Sensex is likely to maintain a sideways trend with a cautious undertone, as resistance near 73,500 continues to limit the recovery. Holding above 72,600–73,000 will be crucial for stabilisation, while a breakdown below this support zone could invite further selling pressure,” said Sachin Gupta, VP, Technical Research at Choice Equity Broking Private Limited.
“On the upside, a sustained move above 73,500-73,800 may improve sentiment and support further gains. Until a decisive breakout or breakdown occurs, traders should remain selective and monitor these key levels closely,” he further added.
Nifty 50 formed a second consecutive high-wave candle with a small real body and long shadows on either side, indicating consolidation amid heightened volatility.
“Nifty in the last two sessions is trading around the 20-day EMA and the 50% retracement of the last week's decline from 23,175-22,372, placed around 22,800-22,830 levels. Going ahead a follow strength above Tuesday's high 22,830 will open further pullback towards 23,000 and 23,175 levels being the confluence of last week high and 50 days EMA,” remarked Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.
A sustained move above the 22,830 level could open the way towards 23,000, followed by 23,175. However, if the index fails to cross this resistance zone, the ongoing consolidation could continue within the broader range of 22,370-22,830. On the downside, immediate support is placed at 22,500.
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Bank Nifty formed a bullish candle on Wednesday, signalling buying interest near the previous month's low. Despite the recovery, the broader technical bias remains corrective. The index is expected to consolidate between 53,600 and 54,650 in the near term.
“Weakness below the recent low of 53,626 will signal an extension of the decline towards key short-term support at 53,200-53,000, being the confluence of the trendline support joining previous major lows and key retracement of the previous major up move,” noted Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.
The 53,626 level remains crucial for the Bank Nifty. A breach of this recent low could extend the decline towards the 53,200-53,000 support zone.