The stock market in India opened on a negative note, with no strong cues coming from the global markets. The Nifty 50 was down 58.1 points at the open to 24,117.55, while Bank Nifty started 142.95 points below the prior close. Sensex fell 133.78 points to 77,130.73.

The broad market also lagged the benchmark indices, with Nifty midcap and smallcap indices trading flat at the end.

Foreign Institutional Investors (FIIs) were net sellers for the second consecutive day on August 28, selling Rs. 5,040 crore. Domestic Institutional Investors (DIIs) meanwhile net purchased Indian equities worth Rs. 5,184 crore.

The Indian rupee is trading 10 paise lower on the day at Rs. 95.48 per dollar, compared with the previous close of Rs. 95.38.

Sensex Outlook

From a technical perspective, the Sensex formed a small bullish daily candle with shadows on either side, suggesting a minor bounce from lower levels. 

However, the index continues to trade below the 200-day EMA, the side continues to be another important level to watch near 78,484. Sustained trading above 77680-78000 will consolidate the recovery and pave the way for further upside, said Hitesh Tailor, Technical Research Analyst at Choice Equity Broking.

Nifty 50 Outlook

The Nifty 50 bounced after a two-session losing streak, trading in a small range and forming a small-bodied daily candle. The short-term structure remains cautionary as Nifty 50 continues to trade below its 20-day and 50-day EMAs.

“Going forward, the 24,000-23,970 zone is expected to act as a crucial support area for the index. A decisive breach below 23,970 could trigger further weakness, paving the way for a correction towards 23,820. On the upside, the 24,300-24,330 zone is likely to act as an immediate resistance. A sustained move above this zone would be required to improve the near-term outlook and open the door for further upside,” said Sudeep Shah, Head, Technical and Derivatives Research at SBI Securities.

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Bank Nifty Outlook

Bank Nifty formed a neutral candle with upper and lower wicks on the daily chart, reflecting indecision.

“Going forward, the 57,000-56,900 zone is expected to serve as a crucial support area. A sustained hold above this region could maintain the ongoing consolidation phase. On the upside, the 57,900-58,000 zone is likely to act as an immediate resistance hurdle. A decisive breakout above 58,000 or a breakdown below 57,000 could signal the end of the current consolidation phase," said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.