Indian markets are expected to open on a subdued note on February 27 with cautious global cues. GIFT Nifty hovered near 25,561 and it indicated a gap-down opening of roughly 75 points from its previous Nifty futures close.
On Thursday, domestic indices ended on a mixed note amid volatility. Sensex slipped 27.46 points to close at 82,248.61 while the Nifty 50 edged up 14.05 points to settle at 25,496.55. Bank Nifty outperformed slightly, rising 144.35 points to 61,187.70.
US cash markets ended slightly higher yet Dow futures experienced a decline of around 250 points suggesting increased market risk aversion.
Asian markets showed mixed performance amid a lack of a clear global trend. Such conditions typically lead to range-bound trading sessions.
Foreign Institutional Investors stayed net sellers and offloaded Rs. 3,466 crore. The ongoing FII selling has created pressure on large-cap stocks. It affects the banking and IT sectors.
Domestic Institutional Investors infused approximately Rs. 5,032 crore which created a positive institutional flow of Rs. 1,566 crore.
Technically Nifty 50 formed a small bearish candle with a lower shadow and reflected hesitation at higher levels.
Immediate resistance is placed at 25,600-25,650. The index could reach 25,800 if it successfully breaks through this resistance level.
The key support level is at 25,400-25,350. Selling will increase if it breaks through this price range.
Options data shows that traders have placed their highest open interest at the 26,000 Call strike and the 24,000 Put strike which creates strong resistance and support levels at those levels.
The Put-Call Ratio stands at 0.88 reflects balanced sentiment rather than extreme bearishness.
Sensex stays range-bound within a definite band. Immediate resistance is at the 82,600 level. Index could reach 82,900-83,000 if a sustained move above this resistance is seen.
On the downside a break below 82,000 may drag it toward 81,700-81,600.
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Bank Nifty index formed a high-wave candle. It suggests market consolidation with slight upward movement. Support level is seen at 60,800-60,700 whereas the resistance is placed at 61,400-61,500.
The index will gain momentum if it breaks through 61,500 leading toward 62,000 and 62,500 within a short period. Until then the wider range of 60,000-61,750 is likely to hold.
With India VIX easing to 13.06 volatility is still under control and overall markets appear range bound.
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