The Indian markets are expected to open Thursday's trading session on a weaker note amid mixed global cues and cautious derivatives positioning signal a flat opening. The GIFT Nifty also signals a muted opening, trading near 25,980, 14 points below its last Nifty futures close.
On Wednesday, domestic benchmarks closed the day largely unchanged with the Sensex dropping 40.28 points or 0.05% to 84,233.64, while Nifty 50 gained 18.70 points or 0.07% to close at 25,953.85.
Midcap and Smallcap indices showed cautious market sentiment as they both recorded minor increases of 0.03% and 0.02%, respectively.
Nifty Auto led market gains with 1.3% increase from strong buying activity in major automotive companies.
Nifty Pharma and PSU stocks gained nearly 1% each. The Nifty IT index experienced a 1.8% decline while Private Banks struggled with slight market pressure.
The Nifty 50 formed a small-bodied candle on the daily chart as traders showed buying interest when prices reached lower levels.
The index has resistance at the 26,000 level, a zone of high call open interest accumulation.
Derivatives data show significant put writing at the 25,900 strike and aggressive call writing at 26,000, which creates a narrow trading range at 25,800-26,050 in the near term.
The immediate support level is between 25,850 and 25,900. A break above 26,000 might lead to an advance toward 26,300-26,400.
The index will experience a small price decline toward 25,800 if the price breaks below 25,900.
The Sensex is currently oscillating within a defined band of 84,200-84,500. Technical indicators suggest indecision, with the index forming a small daily candle.
A breakout above 84,500 could open upside potential toward 84,800-85,000.
On the downside, failure to hold 84,200 may accelerate selling pressure toward 84,000-83,700.
Bank Nifty gained 118.95 points or 0.20% to close at 60,745.35, maintaining strength above key moving averages.
The 60,400-60,500 zone continues to act as a strong demand base. Immediate resistance is seen near 61,000-61,100.
A sustained move above this level could extend gains toward 61,400-61,700.
Foreign Institutional Investors (FIIs) recorded net inflows of Rs. 69 crore, marking the third consecutive buying session and cumulative purchases exceeding Rs. 4,250 crore.
Domestic Institutional Investors (DIIs) added Rs. 1,174 crore which offers stability amid global uncertainty.
Analysts expect stock-specific momentum to dominate as Q3 earnings season approaches its final phase. At the same time 26,000 on Nifty remains the decisive trigger for the next directional move.
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