The Indian stock market opened higher amid a decline in Brent crude prices, while stronger results from NVIDIA lifted Asian technology stocks. Nifty 50 opened 69.85 points, or about 0.20% higher, at 24,277.60, whereas Bank Nifty opened 201.25 points above its prior close. Sensex rose 103.82 points to 77,472.94.

The broader market outperformed, with the Nifty Midcap ending marginally lower, while the smallcap index gained 0.8%. 

Foreign institutional investors (FIIs) were net buyers for a second consecutive session, purchasing Indian equities worth Rs. 502 crore on August 26. Domestic institutional investors (DIIs) also recorded purchases, investing Rs. 6,425 crore in equities.

Sensex Outlook

Technically, the Sensex faced consistent selling pressure at higher levels after a positive open. On daily charts, it has formed a bearish candle, indicating further weakness.

“We believe that, intraday, the market texture is weak, but a fresh selloff is possible only after the dismissal of 77,300 below this, the market could slip to 77,000-76,700. On the flip side, above 77,800, the rally could continue till 78,300-78,500. The current market texture is non-directional; hence, level-based trading would be the ideal strategy for day traders,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.

Nifty 50 Outlook

The Nifty 50 formed a bearish candle with a small upper shadow, signaling profit booking at higher levels.

Failure to close above last week’s high at 24,360 is expected to keep the index in a consolidation phase between 24,000 and 24,350. However, a decisive close above 24,360 could signal an extension of the recent pullback toward 24,550 and 24,700 levels.

For Thursday's trading session, the immediate support zone for the Nifty is around 24,000, while stronger support is placed at 23,800. 

"Nifty has short-term support placed at 24,000-23,800 levels being the confluence of the trendline support joining last 4 months lows, previous major gap area and 61.8% retracement of previous up move from 23,606 to 24,774," said Bajaj Broking Research.

The 24,360 level will therefore remain important for the index in the near term.

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Bank Nifty Outlook

Bank Nifty formed a small bullish candle with an upper shadow, signaling profit booking at higher levels around the 58,000 mark.

"Within the consolidation index is facing resistance around 58,000 levels. Index sustaining above the same will open upside towards 58,500-58,700 levels in the coming sessions being the upper band of the recent consolidation. While failure to move above 58,000 levels will signal consolidation in the range 57,000-58,000 levels in the coming sessions," said Bajaj Broking Research.

For Thursday, the 58,000 level is likely to remain a key resistance zone for Bank Nifty. A sustained move above this level could open the way toward 58,500-58,700, while failure to cross it could keep the index confined between 57,000 and 58,000.