The Indian stock market opened higher amid improved global cues. The Nifty 50 was up 83.5 points or 0.35% at the open to 23,997.95, while Bank Nifty started 325.85 points above the prior close. Sensex rose 154.6 points to 76,724.95.

Foreign institutional investors (FIIs) continued their buying for the second consecutive session on September 2, investing Rs. 6,688 crore in Indian equities. Domestic institutional investors (DIIs) also remained supportive, buying equities worth Rs. 2,812 crore.

The Indian rupee opened 67 paise higher at Rs. 94.30 per dollar on Thursday versus the previous close of Rs. 94.97.

Sensex Outlook

Technically, the Sensex formed a small green candle on the daily chart with a short lower shadow, indicating a sell-on-rise opportunity on any pullback.

The broader outlook remains sideways with a cautious undertone, as the Sensex attempts to build a base near the lower levels after the sharp decline. Holding the 76,100-76,300 support zone will be crucial for sustaining the recovery, while a move above 76,800-77,000 could provide further strength, said Sachin Gupta, VP of Technical Research at Choice Equity Broking.

Nifty 50 Outlook

From a technical perspective, the sharp decline has pushed the Nifty 50 closer to the initial downside target and support around the 23,800 level, and a decisive break below this could extend the correction towards the 23,600 mark. 

On the upside, the previous support level of 24,000 is likely to act as an immediate resistance, followed by the 24,150 hurdle in case of a recovery. Given the heightened volatility and global uncertainty, we reiterate our advice to maintain a cautious stance, keep position sizes light and focus on disciplined risk management, said Ajit Mishra, SVP, Research, 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, signaling consolidation. 

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 at 58,000, said Pabitro Mukherjee, DVP of Research at 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 range 57,000-58,000 levels 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 levels, being the confluence of the 52-week EMA," he said.