The Indian market opened lower after record highs on Wall Street offer a supportive global backdrop, but elevated US Treasury yields and caution ahead of today’s RBI policy decision are likely to keep investors sentiment subdued. Nifty 50 opened 85.65 points, or 0.38% lower at 22,690.45 from the previous day's close, while Bank Nifty started at 54,968.70, up 159.7 points. Sensex edged higher by 102.43 points to 72,965.38.

Broader indices also ended higher with the Nifty Midcap index rose 1% and Smallcap index added 1.5%. The Indian rupee opened flat at Rs. 96.42 per dollar on Wednesday versus previous close of Rs. 96.42. Foreign institutional investors (FIIs) sold Rs. 2,961.30 crore of Indian equities on Tuesday. Domestic institutional investors (DIIs) bought Rs. 5,088.92 crore, according to the NSE’s data.

Sensex Outlook

Sensex opened higher and maintained positive momentum yesterday, forming a bullish candle on the daily chart and a pullback on the intraday chart suggests potential for further upside from current levels. 

“For day traders, 72,500 will act as a key support zone. As long as the market holds above this zone, the pullback is likely to continue. On the upside, the market could rebound to 73,300-73,500. Conversely, a fall below 72,500 would make the uptrend vulnerable. Below this level, the market could slip to 72,200-72,000,” said Shrikant Chouhan, Head of Equity Research, Kotak Securities.

Nifty 50 Outlook

Nifty 50 has a key support zone at 22,500-22,600, while 22,900-23,000 will act as the immediate resistance. With the RBI policy announcement today, volatility is likely to remain elevated. As long as Nifty holds the 22,500-22,600 support zone, bullish sentiment will remain active. Traders can consider a buy-on-dips approach around this support. 

A sustained move above 22,900 can improve momentum and open the way towards 23,000. On the downside, a sustained break below 22,500 would weaken the setup and could bring further selling pressure. 

Also Read: US Stock Market: Wall Street Edges Higher as S&P 500 Hovers Near Record, Yields Slip

Bank Nifty Outlook

Bank Nifty has been moving higher over the past four sessions, forming a sequence of higher highs and higher lows, suggesting that buying interest is emerging from the support zone. 

Over the past few sessions, prices have repeatedly hit a ceiling near 55,300. How prices react around this zone after the RBI policy will be key. A move above 55,300-55,400 could trigger fresh positive momentum towards the 56,000. 

On the downside, support is now placed around 54,500-54,300. For now the index is awaiting a trigger from the policy outcome.