The Indian stock market opened higher amid mixed global cues and a decline in oil prices. The Nifty 50 index opened at 23,334.70, gaining 64.1 points or about 0.28%, whereas the Bank Nifty increased by 117.1 points from the last closing level. The Sensex was up 260.65 points to 74,575.24.
The participation level was higher in the broader markets as the Nifty Midcap index rose by 0.52% and the Nifty Smallcap index by 0.86%. The Indian rupee started flat at Rs. 95.87 against the US dollar.
Foreign Institutional Investors (FIIs) were net sellers in the cash market on September 17, selling Rs. 3,208.76 crore worth of shares. Domestic institutional investors (DIIs) were net buyers of Rs. 3,617.75 crore.
The Sensex is expected to continue its negative trend unless it can break above the 74,700-75,000 resistance level.
On the downside, the 73,500-74,200 is a crucial support area, which could help prevent further weakness. If the price breaks below this zone, it is likely that selling pressure will resume, said Sachin Gupta, VP, Technical Research at Choice Equity Broking Private Limited.
The Nifty 50 moved into minor positive territory on Thursday and ended up 53 points up. On the daily chart, the index made a small green candle with an upper shadow.
A recent price recovery has occurred over the last couple of sessions off the key area of support around 23,100-23,000. The index lacked strength to turn back the trend of lower highs and lower lows and could not recover from these support levels.
On the upside, the 23,400-23,500 zone will act as a strong resistance. A sustained hold below 23,000, however, could trigger a deeper correction.
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The Bank Nifty formed a long upper-shadow bearish candle that shows a strong supply level at the higher levels. The sharp rejection from the day’s high suggests that sellers remained active and capped further upside.
Immediate support is seen at 55,500-55,700, while resistance is placed around 56,300-56,500. The trading range for the broader market is likely to be around 55,500 to 56,500, and the near-term bias remains sideways. Sachin Gupta, VP, Technical Research, Choice Equity Broking Private Limited, opined that an upside breakout from 56,500 would help the technical structure, while a fall below 55,500 would put additional downside pressure on the index.
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