The Indian stock market opened higher amid easing oil prices and positive sentiment in Asian markets. Nifty 50 opened 47.5 points, or 0.21%, higher at 22,603.25 from the previous day's close, while Bank Nifty started at 54,901.30, up 187.2 points. Sensex edged higher by 125.58 points to 72,508.05.

Broader indices tracked the benchmark indices, with Nifty Midcap and Smallcap adding 0.5% each. The Indian rupee opened flat at Rs. 96.31 per dollar on Tuesday compared with the previous close of Rs. 96.30.

Foreign institutional investors (FIIs) continued their selling streak on October 5, offloading equities worth Rs. 4,699 crore, while domestic institutional investors (DIIs) remained buyers, purchasing equities worth over Rs. 5,181 crore during the session. 

Sensex Outlook

Technically, the Sensex has formed a reversal pattern after a prolonged correction on the daily chart. However, the short-term market outlook remains weak. 

“We believe 72,000 and 71,800 will act as key support levels for day traders. As long as the market trades above these levels, the pullback is likely to continue. On the upside, the index could rebound to 72,800, with further gains potentially taking it to 73,000. Conversely, a break below 71,800 could accelerate selling pressure and lead to a retest of the 71,500-71,300 range,” said Shrikant Chouhan, Head of Equity Research, Kotak Securities.

Nifty 50 Outlook

Nifty 50 formed a high wave candle with a small body and long shadows in both directions, suggesting intraday volatility. 

“Going ahead, strength above last two sessions almost identical high of 22,621 will open further pullback towards 22,750 and 23,000 levels in the coming sessions. Failure, to move above last two sessions high will signal consolidation in the range of 22,200-22,620 ahead of the RBI monetary policy meeting. On the downside, a break below 22,180 could drag the index toward 22,000. For a meaningful trend reversal index would require forming a sustained Higher High-Higher Low structure and reclaim the 23,000-23,100 level,” Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

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Bank Nifty Outlook

Bank Nifty slipped below its support line last week and dropped to 53,785. Over the last few days, it has bounced back as the daily RSI recovered from oversold levels. The earlier support line will now act as resistance around 55,500. 

On the downside, the index could retest the swing low of 53,785 and then drift lower towards 52,800. The bearish view remains valid as long as Bank Nifty trades below 56,210. A sustained hold above 54,000-54,200, along with an improvement in the RSI, could support a recovery in the coming sessions.