The Indian stock market opened lower amid weakness across global markets as the selloff in global bonds intensified. The Nifty 50 was down 197.8 points or 0.82% at the open to 24,858, while Bank Nifty started 403.15 points below the prior close. Sensex fell 472.96 points to 76,471.32.

The broader market underperformed the benchmark indices, with the Nifty midcap index falling 1.4% and the smallcap index down 0.2%.

The Indian rupee opened marginally higher at Rs. 94.92 per dollar on Wednesday versus the previous close of Rs. 94.95.

On September 1, foreign institutional investors (FIIs) snapped their three-day selling streak and turned net buyers, purchasing equities worth Rs. 1,143 crore. Meanwhile, domestic institutional investors (DIIs) continued their buying activity, investing Rs. 1,846 crore in Indian equities during the session.

Sensex Outlook

Technically, the Sensex continues to face resistance at higher levels while remaining below its key moving averages. Holding the 76,400-76,600 support zone will be crucial to limit further downside, whereas a sustained move above 77,300-77,500 could improve the short-term structure. 

It is likely to remain volatile and range-bound, said Sachin Gupta, VP of Technical Research at Choice Equity Broking.

Nifty 50 Outlook

"The Nifty 50 index is trying to defend the 24,000 level on a closing basis, but the overall trend remains weak and vulnerable to further downside toward the 23,900-23,800 zone. On the upside, the 24,150-24,250 zone, coinciding with multiple technical hurdles, is expected to act as a resistance band. We thus recommend continuing with ‘sell on rise’ in the Nifty 50 and maintaining a stock-specific approach based on the sectoral performance, while adhering to strict risk and position management," said Ajit Mishra, SVP, Research at Religare Broking.

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Bank Nifty Outlook 

Bank Nifty formed a high-wave candle with a small body and long wicks in either direction, indicating consolidation around the 50-day EMA. The broader consolidation range remains intact between 56,500 and 58,700. 

It may extend the consolidation and a breakout or breakdown will signal directional momentum. Within the consolidation, it is facing resistance around 58,000, said Bajaj Broking.

"Nifty Bank sustaining above 58,000 will open upside towards 58,500-58,700. Failure to sustain above 58,000 will signal consolidation in the 57,000-58,000 range in the coming sessions. On the lower side, a breach below immediate support of 57,000 will signal extension of decline towards the key short-term support area of 56,500-56,200," the brokerage added.